Your Comprehensive Guide to Pre-Settlement Funding

Learn everything you need to know about pre-settlement lawsuit funding for car accidents, slip & fall accidents and more from Oasis Financial.

Pre-Settlement Funding Explained

Waiting for a personal injury lawsuit to settle can be a long, stressful process—especially when medical bills, lost wages, and daily expenses start piling up. That’s where pre-settlement funding comes in. If you’re struggling to make ends meet while your case is ongoing, this type of financial assistance can help bridge the gap.

In this guide, we’ll walk you through everything you need to know about pre-settlement funding, from how it works to whether it’s the right choice for you. Think of this as your go-to resource that’s clear, straightforward, and designed to help you make informed decisions with confidence.

What Is Pre-Settlement Funding?

Pre-settlement funding provides cash to help plaintiffs cover expenses while they wait for their personal injury lawsuit to settle. Unlike a loan, if you win or settle your lawsuit, the pre-settlement funding company is repaid from your settlement. But if you lose your case, you owe nothing. That’s because pre-settlement funding is a non-recourse obligation, meaning repayment is only required if you receive compensation. It’s a risk-free way to stay financially afloat during a legal battle without taking on debt.

Who Needs Pre-Settlement Funding?

Pre-settlement funding can be beneficial for anyone involved in a personal injury lawsuit, whether from a car accident, slip and fall, or any other type of personal injury, who needs financial support while waiting for their case to resolve. If you’re facing mounting bills or struggling to make ends meet while your case drags on, this funding option can provide a much-needed cushion.

For example, someone involved in an automobile accident may face medical bills, car repairs, and lost wages after the accident, but the lawsuit could take months or even years to reach a settlement. Without the proper financial support, these expenses can become overwhelming. Pre-settlement funding can help cover those costs during the wait, providing financial peace of mind that enables the individual to focus on their recovery and their case.

Why Get Pre-Settlement Funding?

Pre-settlement funding can provide crucial support during a difficult time, offering several benefits to those involved in personal injury lawsuits. Here are some of the key reasons why it might be the right choice for you:

• Access to funds when you need them – Get financial relief to cover medical bills, living expenses, or other costs while waiting for your case to settle.
• No repayment if you lose – Since pre-settlement funding is a non-recourse obligation, you’re not required to repay the funds if you don’t win your case.
• Faster and easier process – The application process is quick and straightforward, without the paperwork or long approval times often associated with traditional legal loans.
• Helps avoid settling too early – With financial support, you’re not forced into settling for less than your case is worth just to cover immediate expenses.
• Peace of mind – Having the financial breathing room to focus on your case and recovery can reduce stress and help you make better decisions during your legal journey.

In a nutshell, pre-settlement funding can provide the stability you need while you fight for the compensation you deserve.

How Does Pre-Settlement Funding Work?

The process of obtaining pre-settlement funding is straightforward and involves just a few simple steps. From applying for funding to receiving the cash you need, here’s a quick overview of what to expect along the way. Prior to applying, it is important to first discuss with your attorney whether pre-settlement funding is appropriate for your case.

1. Applying for Pre-Settlement Funding

The first step in applying for pre-settlement funding is submitting a simple application. This usually involves providing basic details about your case, such as the type of injury, the date of occurence, and your attorney’s contact information. The application is typically quick and easy, with no upfront fees.

Will Applying Hurt My Credit Score?

If credit checks are involved in the application process, it’s important to note that applying for pre-settlement funding may have a temporary impact on your credit score. While the funding is still based on the strength of your case, some companies may perform a soft credit check to assess your financial situation.

However, since the approval is based primarily on your case and not your credit score, any impact on your credit would likely be minimal and short-term. Always clarify with the funding provider what kind of credit check they perform before applying.

However, some companies, like Oasis Financial, don’t perform credit checks and instead perform a background check, so your credit score won’t be impacted.

Who Can Apply for Pre-Settlement Funding?

Anyone with a legal claim arising from a personal injury lawsuit can apply for pre-settlement funding.

Plaintiffs applying for pre-settlement funding are typically individuals involved in personal injury lawsuits, such as car accident lawsuits, who need financial assistance during the legal process.

2. Case Evaluation

During the case evaluation step, the funding company reviews the details of your lawsuit to assess its strength and potential outcome. This typically involves evaluating factors such as the type of injury, liability, and the likelihood of a favorable settlement. The goal is to determine whether the case qualifies for funding and how much financial support can be offered.

3. Funding Approval

Once the case evaluation is complete, the funding company makes a decision about whether to approve the funding and how much to offer. This approval is heavily based on the strength of your case, and the anticipated settlement amount. If approved, you’ll receive an offer outlining the terms, including how much you’ll receive and the repayment process.

4. Pre-Settlement Funding Process

After approval, the pre-settlement funding is disbursed to the plaintiff, typically within a few days and sometimes on the same day. The funds are sent directly to the plaintiff and can be used to cover medical bills, living expenses, or other costs.

The funding is repaid from the lawsuit settlement once it’s finalized, making the process straightforward and risk-free for the plaintiff.

Types of Pre-Settlement Funding

Pre-settlement funding is available for a variety of personal injury cases. Depending on the type of lawsuit, funding can help plaintiffs navigate the financial strain while awaiting their settlement. Below are the different types of lawsuits pre-settlement funding available for:

Car/Auto Accident

Funding is available for individuals involved in car or truck accidents. This type of funding helps cover medical expenses, lost wages, and other financial challenges while awaiting the settlement or verdict.

Premises Negligence (Slip & Fall)

If you’ve been injured on someone else’s property due to unsafe conditions, such as a slip and fall, pre-settlement funding can help you manage costs while your case moves forward.

Civil Right Violations

People who have experienced violations of their civil rights, such as police misconduct or discrimination, can also access pre-settlement funding to cover legal and living expenses as they await justice.

Construction Negligence

Construction site accidents or injuries caused by unsafe work conditions can be financially overwhelming. Pre-settlement funding helps workers or injured parties stay afloat while pursuing claims for compensation.

FELA (Railroad)

Under the Federal Employers Liability Act (FELA), railroad workers injured on the job can apply for pre-settlement funding to manage costs while awaiting a settlement or trial outcome.

General Negligence

This broad category includes injuries caused by someone else’s carelessness or lack of proper attention. Pre-settlement funding can assist anyone whose injury is a result of general negligence, such as accidents in public places or on private property.

Maritime (Jones Act)

Those injured while working on ships or offshore platforms can qualify for pre-settlement funding under the Jones Act, which covers seafarers’ injury claims.

Pedestrian Injury

Injuries sustained while walking or crossing streets—whether from a vehicle accident or unsafe conditions—can be financially burdensome. Pre-settlement funding helps plaintiffs cover immediate costs during their legal situation.

Workplace Negligence

If an injury occurs at work due to unsafe conditions or employer negligence, pre-settlement funding can provide financial relief while awaiting the outcome of the lawsuit.

Wrongful Death

In the tragic event of a wrongful death, family members and loved ones left behind can apply for pre-settlement funding to cover funeral costs, living expenses, and any other financial burdens while the case is being resolved.

Advantages Of Pre-Settlement Funding

Pre-settlement funding can offer significant advantages, providing the financial breathing room needed during a lawsuit. A few key advantages include:

Allows Time for Negotiation

With financial support, plaintiffs are not pressured to settle quickly and can take the necessary time to negotiate a fair settlement.

Provides More Equitable Opportunity

Pre-settlement funding levels the playing field by giving plaintiffs the financial means to pursue justice, regardless of their immediate financial situation.

Pre-Settlement Funding FAQs

Below are a few common questions people have about pre-settlement funding to help clarify any uncertainties you might have.

What Does Pre-Settlement Funding Pay For?

Pre-settlement funding can help cover a variety of expenses while you wait for your personal injury case to settle. Some of the common costs a settlement loan can pay for include:

• Medical bills
• Living expenses (such as rent, utilities, groceries)
• Lost wages
• Car repairs
• Transportation costs
• Childcare or family support
• Debt payments
• Personal expenses (such as phone bills and insurance premiums)

Is There a Pre-Settlement Limit?

Yes, there is typically a pre-settlement funding limit, which varies depending on the specifics of your case, such as its strength, the expected settlement amount, and the type and severity of injury. Funding companies (sometimes incorrectly referred to as settlement loan companies) assess these factors to determine the maximum amount they’re willing to advance, but it’s generally capped at a portion of your anticipated settlement or award.

Can I Take Out More Than One Pre-Settlement Funding?

While it’s possible to take out more than one pre-settlement funding, it depends on the specifics of your case and the funding companies involved. Multiple fundings may be allowed if the total amount is justified by the expected settlement. However, taking out more than one funding could impact the total amount you ultimately receive from your lawsuit. It’s important to carefully consider the terms and any potential impact on your case before pursuing additional funding.

What Are the Risks of Pre-Settlement Funding?

The risk of pre-settlement funding is minimal because it’s considered non-recourse, meaning you don’t have to repay the funds if you lose your case. The only cost involved are the disclosed charges, which are applied if you win or settle, but you won’t owe anything if your case is unsuccessful.

Non-Recourse

A non-recourse obligation means that the borrower is not personally liable for repayment if they don’t win their case, and the funding company can only collect from the proceeds of the settlement or judgment.

What is the Probability of Defaulting?

Absent fraud, the probability of defaulting on pre-settlement funding is zero because it’s non-recourse. This means repayment is only required if the case is won or settled in your favor. If you lose your case, you owe nothing.

The Lawyer’s Role in Pre-settlement Funding

Your lawyer plays a key role in the pre-settlement funding process. They help verify the details of your case, communicate with the funding company, and ensure that the funding agreement aligns with your best interests. Since funding is heavily based on the strength of your case, your attorney’s involvement in providing case updates and legal documentation is essential to secure the funding you need. Their expertise also ensures that you’re making informed decisions throughout the process.  Your attorney will also help your with the distribution of funds from your settlement to the funding company.

Choosing the Right Pre-Settlement Company

When choosing a pre-settlement funding company, it’s important to compare rates, fees, and terms to ensure you’re getting a fair deal. Look for a reputable company with transparent terms, no hidden fees, and a track record of working with plaintiffs in similar cases.

Do You Need Pre-Settlement Funding?

Whether you need pre-settlement funding depends on your financial situation and ability to cover expenses while waiting for your case to settle. If you’re struggling to pay for medical bills, rent, or daily living costs, pre-settlement funding can provide relief and allow you to wait for a fair settlement rather than accepting a low offer out of financial pressure.

Why Choose Oasis Financial?

Oasis Financial is a trusted pre-settlement funding company known for our fast approvals, transparent terms, and commitment to helping our clients stay financially stable while awaiting their settlements. With competitive rates and a straightforward process, we provide a reliable solution for those in need of financial support during a lawsuit.

Find Relief from the Burden of Your Lawsuit

Lawsuits can be financially and emotionally draining, but pre-settlement funding offers a way to stay afloat while you fight for the settlement you deserve. Instead of feeling pressured to settle too soon, you can get the financial support you need to cover essential expenses and focus on your case. If you’re struggling with the burden of a lengthy legal process, pre-settlement funding can provide the relief and peace of mind to see it through.

Work With Oasis Financial

Working with Oasis Financial means choosing a trusted partner who is committed to helping you navigate financial challenges during your lawsuit. We offer a simple, transparent process with fast approvals and no hidden fees, so you can focus on your case with peace of mind.

Check out or FAQ page for additional information. If you have questions or know you’re ready to get started, contact us today or begin your easy online application to get the financial support you need.

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