If you’ve heard of pre-settlement funding but aren’t sure if you qualify or whether it’s the right option for you, you’re not alone. Many people navigating a personal injury lawsuit wonder if it could help relieve financial stress while they wait for their case to settle. Understanding when and why to consider pre-settlement funding can make all the difference.
What Is Pre-Settlement Funding?
Pre-settlement funding provides cash in advance of a settlement for personal injury lawsuits, giving them access to a portion of their expected settlement before their case is resolved. Unlike a loan, pre-settlement funding doesn’t require monthly payments or upfront fees. Instead, approval is based on the strength of your case, and repayment only happens if you win—if you don’t receive a settlement, you owe nothing.
While loans accrue interest over time and must be repaid regardless of circumstances, pre-settlement funding is non-recourse, meaning the risk stays with the funding company, not you. This makes it a valuable option for those who need financial relief during a lengthy legal process without taking on additional debt or uncertainty.
Who Needs Pre-Settlement Funding?
A typical person who might need pre-settlement funding is someone facing financial strain after a personal injury accident, especially if they’re unable to work while waiting for their case to settle. Many plaintiffs rely on their income to cover essentials like rent, medical bills, and daily living expenses, and when that income is suddenly gone, the financial pressure can be overwhelming.
As an example, take the case of a 38-year-old single mom who was injured in a car accident caused by a distracted driver. She’s unable to work, and with medical bills piling up, she’s struggling to cover rent and support her kids. Her attorney expects a strong settlement, but the legal process could take months, or even years. She would be a strong candidate for pre-settlement funding, as it would provide her with the cash needed to stay afloat and provide financial stability while her case moves forward.
Types of Pre-Settlement Funding
Pre-settlement funding, in some states provided as a lawsuit settlement loan, isn’t just for car accident cases—it can provide financial relief for plaintiffs in a variety of personal injury lawsuits. Whether you’re recovering from a slip-and-fall injury, a workplace accident, or another type of claim, pre-settlement funding can help cover essential expenses while you wait for your case to settle.
Car/Auto Accident
Individuals involved in car accidents may face mounting medical bills and lost wages. Pre-settlement funding provides financial support to help cover these expenses while awaiting a settlement or verdict.
Premises Negligence (Slip & Fall)
If you’ve been injured on someone else’s property due to hazardous conditions, such as a slip and fall, pre-settlement funding can ease financial stress while your case progresses.
Construction Negligence
Injuries on construction sites due to unsafe conditions can create financial strain. Pre-settlement funding offers support to injured workers or affected individuals as they pursue compensation.
FELA (Railroad)
Railroad workers injured on the job under the Federal Employers Liability Act (FELA) can access pre-settlement funding to help with medical bills and other costs while awaiting case resolution.
General Negligence
When injuries result from someone else’s carelessness—whether in a public place or on private property—pre-settlement funding can provide financial relief during the legal process.
Pedestrian Injury
Pedestrians hit by vehicles or injured due to unsafe conditions may face significant medical and financial challenges. Pre-settlement funding helps cover essential costs during their case.
Workplace Negligence
If unsafe work conditions or employer negligence cause an injury, pre-settlement funding can offer financial stability while awaiting a legal resolution.
Wrongful Death
Families pursuing wrongful death claims often face unexpected financial hardships. Pre-settlement funding can assist with funeral costs, living expenses, and other financial needs while the case is in progress.
Have you been involved in an auto accident and need help with pre-settlement funding? Oasis is here to help!
7 Reasons to Consider Pre-Settlement Funding
If you’re struggling financially while waiting for your lawsuit to settle, here are seven key reasons why pre-settlement funding might be the right solution for you.
1. Financial Relief for Daily Expenses
Pre-settlement funding provides fast cash to ease financial strain while you await your case’s outcome. It can help cover medical bills, rent, groceries, daycare, and other essential expenses, allowing you to focus on recovery instead of worrying about making ends meet.
2. Avoiding Pressure to Settle Early
Settlement cases can take anywhere from months to years to resolve, depending on factors like case complexity, negotiations, and court schedules. The process often involves extensive discovery, expert testimony, and multiple rounds of negotiation. Pre-settlement funding helps plaintiffs avoid financial pressure, allowing them to let their case proceed naturally and potentially secure a more favorable settlement without rushing into decisions due to financial stress.
3. Paying For Medical Bills and Treatment
In personal injury cases, the settlement money is typically intended to cover medical expenses and other damages, but it can take time for that money to become available. Meanwhile, plaintiffs often face pressing medical bills that need to be paid right away. Pre-settlement funding helps bridge this gap, providing immediate financial relief for medical costs and other expenses before the settlement is finalized, so plaintiffs don’t have to worry about paying bills out of pocket or delaying necessary treatments.
4. Supporting Families During Legal Battles
During a legal battle, injured individuals may lose income while still facing daily expenses like rent, utilities, groceries, and childcare. Pre-settlement funding helps cover these costs, offering financial relief to families while they wait for their settlement, easing stress and preventing additional hardships.
5. No-risk funding (repay only if you win)
A non-recourse obligation means that the consumer is not personally responsible for repaying the funds if they don’t win the case or receive a settlement. In the context of pre-settlement funding, this type of funding (sometimes incorrectly referred to as a lawsuit loan) allows plaintiffs to secure financial assistance without the risk of being burdened with repayment if their case is unsuccessful.
The pre-settlement funding process typically begins with an application, where the plaintiff’s attorney reviews the case and provides details. Based on the strength of the case, the funding company provides a lump sum to cover immediate expenses. If the plaintiff wins or settles the case, the funding is repaid from the settlement amount. If the case is lost, the plaintiff owes nothing.
6. Speed of Approval and Funding
The pre-settlement funding process involves four main steps:
- Application: Prior to applying for pre-settlement funding, it is important to first discuss with your attorney whether it is appropriate for your case. To start the process, applicants fill out a simple application. It’s helpful to have some key documents ready, like details of your injury, the type of case you have (e.g., slip and fall, car accident), and contact information for your attorney.
- Case Evaluation: After you submit your application, your attorney works with the funding company as it evaluates the strength of your case. This step determines whether you meet the necessary criteria, such as having an injury claim resulting from a valid lawsuit (for example, a car accident or slip-and-fall case).
- Approval: If your case passes the evaluation, Oasis approves your application, often on the same day.
- Disbursement: Once approved, the funding company disburses the funds, typically within a few days, to cover medical bills, living expenses, or other urgent needs.
To apply, you must have an injury claim and ensure that your injury is directly related to the lawsuit you’re pursuing. Additionally, you must be a resident of the state where you’re applying for legal funding. These stipulations ensure that the funding company is following state-specific laws and only providing funds to eligible individuals based on the legal basis of their case.
7. Oasis Financial’s Trusted Reputation
Pre-settlement funding isn’t right for everyone, but for those facing financial strain during a legal battle, it can offer crucial relief. Before pursuing it, ask yourself if you have immediate financial needs that could be better managed with funding and if you’re comfortable with the repayment structure.
It’s important to work with a company that truly understands your situation. Oasis differentiates itself from others by prioritizing compassion and customer service, ensuring that every one of our clients feels supported throughout the entire process. We take the time to listen, answer questions, and provide personalized solutions, making the journey less stressful and more manageable.
Work With Oasis Financial
Oasis Financial is a trusted provider of pre-settlement funding, recognized for our straightforward and transparent process, quick approvals, clear terms without hidden fees, and dedication to supporting clients through the financial challenges of waiting for their settlements. With competitive rates and an uncomplicated process, we offer a dependable solution for those in need of financial assistance during a lawsuit.
By choosing Oasis Financial, you’re partnering with a trusted ally committed to guiding you through financial difficulties while your case progresses. For more information, visit our FAQ page and comprehensive guide to pre-settlement funding. If you’re ready to move forward or have questions, reach out to us today or start your online application for the financial help you need.
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 SC and CO 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.