Personal Injury Lawsuit Funding / What Is Lawsuit Funding? A Plain-Language Guide

What Is Lawsuit Funding? A Plain-Language Guide

Lawsuit funding gives an eligible plaintiff access to cash while a personal injury claim is pending. It is commonly called a lawsuit loan, settlement loan, pre-settlement advance, or legal funding, but a non-recourse cash advance is not a traditional loan.

The funding company evaluates the legal claim and expected recovery. If it approves the request, it provides money now in exchange for an agreed portion of future case proceeds. Repayment comes from a successful settlement or award under the written agreement. If there is no recovery, a non-recourse advance is not repaid.

How Lawsuit Funding Works

  1. Application: The plaintiff shares basic contact, attorney, and case information.
  2. Attorney authorization: The plaintiff authorizes the attorney to discuss the claim and provide relevant records.
  3. Case review: The funder evaluates liability, injuries, insurance, case status, liens, and the potential recovery.
  4. Written offer: If approved, the applicant receives terms showing the advance and how repayment is calculated.
  5. Payment from proceeds: After a successful recovery, the attorney pays the amount due from case proceeds and distributes the balance.

Who May Qualify?

An applicant generally needs a pending personal injury claim and an attorney handling the case. The attorney must be willing and authorized to provide enough information for a funding review. Approval and the amount offered depend on the case; neither is guaranteed.

Fast Funds focuses on the expected case recovery rather than the applicant’s credit score, employment history, or collateral. Common matters reviewed may include vehicle crashes, premises liability, slip and fall injuries, medical malpractice, workplace-related third-party claims, and other negligence-based cases. See the types of cases Fast Funds may fund.

What Can the Money Be Used For?

Recipients generally decide how to use their advance. Common needs include rent or mortgage payments, utilities, food, transportation, medical travel, and other necessary living expenses while a claim is pending. Lawsuit funding does not replace legal advice, insurance benefits, public assistance, or careful budgeting.

Costs and Terms to Review

Before accepting funding, read the entire agreement and ask for a clear written explanation of the amount advanced, every fee, the repayment calculation, and how the amount due may change over time. Confirm that the agreement is non-recourse, disclose prior liens or advances, and ask your attorney to review the transaction.

Comparing offers can be useful, but compare the total potential repayment and contract terms—not only the amount of cash offered. Avoid any provider that will not explain its agreement or that asks you to proceed without involving your attorney.

When Lawsuit Funding May Make Sense

Funding may be worth considering when necessary expenses cannot wait and the applicant understands the cost of exchanging part of a future recovery for cash now. It may not be appropriate when other lower-cost resources are available or when the advance would consume too much of the expected proceeds.

Start With a Case Review

To learn whether your claim may qualify, apply for lawsuit funding or contact Fast Funds. Applying does not require accepting an offer.

Frequently Asked Questions

Lawsuit funding is a non-recourse cash advance based on a pending legal claim and its expected recovery. The funder purchases a portion of potential future proceeds rather than making a traditional consumer loan.

Applicants generally need a pending personal injury claim, an attorney representing the claim, and enough case information for the funder to evaluate the expected recovery.

No. A traditional loan requires repayment regardless of the outcome. Non-recourse lawsuit funding is repaid from a successful recovery according to the agreement and is not repaid when there is no recovery.

Fast Funds bases its review primarily on the claim and expected recovery, not the applicant’s credit score or employment history.

Submit an application and authorize your attorney to discuss the claim with Fast Funds. The company reviews the available case information and, if approved, provides written terms for consideration.