For those involved in personal injury lawsuits, bills don’t stop piling up. Medical expenses, rent, and everyday costs can quickly feel overwhelming, especially when the legal process moves at a much slower pace. Pre-settlement lawsuit funding exists to give plaintiffs financial breathing room, allowing them to focus on recovery and the case itself instead of stressing about immediate expenses.
Applying for Pre-Settlement Funding
Curious about how pre-settlement funding works? The process begins with a simple application that’s designed to be straightforward, though it does require the right documentation. Having things like details about your case and the current status of your lawsuit makes the rest of the process much smoother and faster.
Providing accurate and complete information is critical to help pre-settlement funding companies quickly assess your application and get you the financial support you need without unnecessary delays. By taking the time to gather and organize your documentation correctly, and provide it in a timely manner, you create a solid foundation that will move the funding process forward with less stress.
5 Common Misconceptions About Pre-Settlement Funding
If you’ve heard mixed things about what pre-settlement funding is, you’re not alone. Let’s take a closer look at five common misconceptions and set the record straight, so you can feel more confident about whether this is the right option for you.
1. “Pre-settlement funding is a loan.”
This is one of the biggest misunderstandings. Pre-settlement funding is not a loan because there are no obligation to repay if you lose your case (including no monthly payments), approval doesn’t rely on your credit score (if at all), and there is no risk of debt collection unless you breach your funding agreement.
Rather, pre-settlement funding is a non-recourse funding against your future settlement. If your case doesn’t settle in your favor, you don’t have to repay the funds. That makes it fundamentally different from borrowing money from a bank or credit card.
2. “Pre-settlement funding is too expensive.”
It’s true that pre-settlement funding comes at a cost, but it’s important to understand it in context. The funding helps plaintiffs cover essentials when they need it most and, most importantly, avoid accepting a settlement that’s far below what their case is worth. In many cases, the ability to hold out for a fair settlement outweighs the cost of funding, leaving plaintiffs in a better financial position overall.
3. “Funding companies influence or control your legal case.”
Your case always stays in the hands of your attorney. Funding companies do not interfere with your legal strategy, settlement negotiations, or any other part of your case. Their role is simply to provide financial support so you can give your attorney the time and space to fight for the best outcome for you.
4. “All pre-settlement funders are unregulated.”
While it’s true that not every company operates with the same standards, reputable funding companies follow strict industry guidelines. Many are members of the Alliance for Responsible Consumer Lending (ARC), which sets best practices around transparency, fair contracts, and responsible funding. Furthermore, many states do require a license for and provide oversight over litigation funding companies Choosing a company that aligns with these standards and complies with its regulatory duties, like Oasis Financial, gives you peace of mind and confidence that you’re working with a trusted partner.
5. “Taking pre-settlement funding means I’ll have less money when my case settles.”
In reality, the opposite is often true. Having access to funding can prevent you from feeling pressured into accepting a lowball settlement offer just to cover urgent expenses. By easing that financial strain, you and your attorney can take the time needed to pursue the full value of your case.
Many plaintiffs benefit from pre-settlement legal funding. For many, there is the possibility that they end up with more in their pocket at settlement because they had the resources to hold out for a fairer outcome.
Injury Claims Often Covered by Pre-Settlement Funding
Every case is unique, but many pre-settlement funding clients are facing personal injury claims that stem from everyday situations. Auto accidents are among the most common, whether someone was rear-ended at a red light, struck by a distracted driver, or hit while walking across a crosswalk. Even passengers can pursue claims if they’re injured in a crash caused by someone else’s negligence.
Those navigating medical malpractice cases, such as when a surgical error, misdiagnosis, or improper treatment leads to serious complications, also frequently qualify for funding. Slip and fall injuries that happen as a result of a wet grocery store aisle, a loose stair rail, or icy sidewalks that a property owner failed to maintain are another frequent cause of claims. Workplace injuries are also common, ranging from falls on construction sites to repetitive strain injuries or accidents caused by unsafe equipment.
No matter the situation, pre-settlement funding can provide critical financial relief while you focus on healing, and your attorney works toward a resolution.
Is Pre-Settlement Funding Right for You?
Pre-settlement funding isn’t for everyone, but it can be a vital tool for personal injury plaintiffs who need financial relief while waiting for the resolution of their case. By clearing up these common misconceptions, we hope to position pre-settlement lawsuit funding for what it is—a way to level the playing field against insurance companies and protect your future while your case moves forward.
A personal injury lawsuit can disrupt nearly every part of your life, and the last thing you need is more uncertainty. We take the time to learn about your case, collaborate directly with your attorney, and move quickly to get you the financial relief you need, without extra stress or confusion.
With Oasis, you can expect a transparent, streamlined process: fast approvals, no hidden fees, and the reassurance of knowing you have a partner supporting you every step of the way.
Ready to take the next step? Check out our FAQs or start your quick online application today. And if you want to further explore whether pre-settlement funding is right for you, contact us to speak with a member of our team.
The information provided on this website does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available on this site are for general informational purposes only. No attorney-client or confidential relationship is or will be formed by use of the site. Readers of this website should contact their attorney to obtain advice with respect to any particular legal matter. No reader, user, or browser of this site should act or refrain from acting on the basis of information on this site without first seeking legal advice from counsel in the relevant jurisdiction.
Oasis provides pre-settlement funding, also known as consumer litigation funding, to its customers through different products depending on their state of residence or cause of action. Many consumers will be provided pre-settlement funding in the form of a purchase agreement, which assigns a portion of the pending proceeds from their legal claim. Other consumers, such as those in CO, CT and SC will be offered a funding in the form of a pre-settlement loan, sometimes referred to as a lawsuit loan. These transactions have important differences, therefore, consumers should carefully review and be aware of the type of transaction that is offered to them by any funding company.