The amount of the pre-settlement cash advance is based on how much you are expected to win in the case.

If you lose the lawsuit, you are not required to pay back any of the money that the pre-settlement funding company advanced. Many people wonder what percentage of the settlement they can get before finally winning the judgment.

What Is Pre-Settlement Funding?

Pre-settlement "loans" are offered to plaintiffs in various personal injury cases, from wrongful deaths and medical malpractice to product liability and workplace injury. These "loans" are not loans in the traditional sense, but many companies refer to them that way to make it easier for borrowers to understand.

These loans are not strictly regulated, and the terms can vary from state to state. Reputable pre-settlement funding companies usually require a short application, and the approval is not based on your credit score. In most cases, you will get your funds in as little as one day.

The amount you can borrow hinges mainly on the circumstances of your case, the expected settlement amount, and how long the case is expected to last. When you win in court, you will be required to pay back the amount of the advance plus fees and interest.

What Percentage Can I Get in Pre-Settlement Funding?

According to a popular settlement funding company, borrowers are allowed 15% to 20% of the anticipated settlement amount as an advance. Borrowers may also take out more than one pre-settlement cash advance.

This means that if you are expecting to win $100,000 in compensation, your advance is capped at $20,000. This limit may vary from state to state, but it is helpful to think of the 20% cap as a general rule.


The Pros and Cons of Pre-Settlement Funding

The most significant benefit of pre-settlement funding is that you can get money upfront to help pay off some of the expenses related to a civil case. You may be out of work or recovering from an injury. The bills might be piling up with no end in sight. A cash advance can give you the cash you need now without having to wait until the conclusion of your case.

On the other hand, the interest rates for pre-settlement funding tend to be excessively high because the loans are a bit riskier for the lender. They only pay if you win the case, so this means there is a possibility that you lose and the lenders lose their money too.

Besides, your attorney has to agree to your receiving of the funds, something that many attorneys are reluctant to do because of the legalities involved. Many financial experts recommend that litigants seek out alternative sources of funding before turning to pre-settlement funding.


Pre-settlement funding is a fast source of financing when seeking compensation in a personal injury case that might drag on past your financial capabilities. You can get up to 20% of the expected settlement in cash advance but expect to pay some fees and interest rates too if you win your case. It will also be helpful to read more about the types of personal injury cases in which you can access such convenient funding.