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Lowest Cost Pre-Settlement Funding: Full Guide & Tips (2022)

Pre-settlement funding is a helpful way to get the money you need to pay your bills while waiting for your case to settle.

But how can you find the lowest cost pre-settlement funding?

In this guide, we’ll provide you with the process along with some tips to get the pre-settlement loan you need with the best terms and lowest costs.

What Is Pre-Settlement Funding?

Pre-settlement funding is a loan that provides you with the cash you need based on the expected value of your settled lawsuit.

For example, if you have been in a car accident and have filed a claim for $100,000 for injuries, Stonewood Funding can provide you with part of your expected settlement that you can use to pay your immediate bills.

When you opt to work with a lawsuit funding company, you are given a loan based on the merit of your case. Our lending team will review the facts of your case and any supporting documentation with your law firm.

Once we understand the personal injury case and have determined it has merit, we can offer you pre-settlement loans. The amount we offer will be determined by the expected value of your settlement and the facts of your case.

One of the best things about pre-settlement funding with Stonewood Funding is that you don’t have to pay us back if you lose your case. There are also no payments to make while your case is still with the court.

You only pay us IF a winning settlement has been reached. If you lose your case, you don’t pay us anything as the loan is non-recourse. In this way, our lending can be considered to be a risk-free loan.

It costs nothing to apply for a pre-settlement cash advance. There is also no credit check. Lawsuit funding is determined entirely by the facts of your case and supporting documentation given by your law firm.

How Much Is the Lowest Cost Pre-Settlement Funding?

There are three primary things to look for when you want to ensure you’re getting the lowest cost pre-settlement funding:

1. The Lawsuit Loan Should Be Non-Recourse

With non-recourse lawsuit funding, you won’t have to pay back the loan if you lose your case.

2. The Lawsuit Loan Should Have the Lowest Possible Interest Rates

Because your interest rates can greatly impact the total amount you pay over the life of a loan, it’s important to do your homework and pick a lending partner who offers low-interest rates. At Stonewood, we have lower interest rates than our competitors.

3. The Lawsuit Loan Should Have the Least Amount of Fees

While pre-settlement funding loans can have a number of different fees, look for a lender who can reduce or eliminate certain fees altogether. For example, you can avoid many traditional fees charged by traditional brokers by working with a direct lawsuit loan company like Stonewood.

How Does Lowest-Cost Pre-Settlement Funding Work?

To start the legal funding process with Stonewood Funding, you’ll need to follow several steps.

Step #1: Get an Attorney

We are only able to work with individuals who have an attorney. Our team cannot provide lawsuit loans to people who have chosen to represent themselves in their case. Ensure you have an attorney and a working relationship with them before requesting a lawsuit loan.

Step #2: Apply for Legal Funding with Stonewood Funding

Once your case has been filed, apply online or by calling 844-544-3863 to begin the pre-settlement funding process.

You’ll provide information about yourself, your claim, and your attorney. We’ll use the information to appraise your case’s expected value, determine an approximate amount for a lawsuit loan, and calculate interest rates.

Step #3: We’ll Speak with Your Lawyer

Before providing you with legal funding, we will need to speak with your attorney. Speaking with an attorney allows us to clarify any questions about your lawsuit and establish an appropriate amount for lawsuit funding. Once we have decided on the amount, we’ll send your law firm the pre-settlement funding agreement and contract that includes the interest rates.

Step #4: Send Your Pre-Settlement Lawsuit Loan

As long as the application process is smooth and we can obtain the information we need to process your loan, we provide pre-settlement advances within 24 hours. You should have the money you need within one business day of applying for lawsuit funding. Money is deposited directly to your bank account.

Step #5: Repayment

We don’t ask you for any payments while your case is being finalized. The money you obtain from Stonewood Funding will be repaid to us once you receive your fair settlement proceeds. If your claim is unsuccessful, we shoulder the loss. You won’t be required to pay us back.

How Much Does It Cost to Get Pre-Settlement Funding?

As the borrower, you will pay nothing to Stonewood Funding unless your case is successful. We will determine the amount you can borrow based on the quality of your case, its supporting documentation, and the amount you are expected to receive from the settlement. You are not required to make any payments to us until the case is finalized.

We will outline interest rates and borrowing costs in the contract that we send your attorney. You can review the terms of the agreement to ensure that you are comfortable with them. We pride ourselves on being one of the lowest-cost pre-settlement funding companies available.

Are There Any Pre-Settlement Funding Fees?

Pre-settlement funding is not a traditional loan where you would pay back the amount borrowed regardless of a case’s outcome. Instead, the lawsuit funding company provides you with the money you need during the time you are waiting for your case to be completed. You don’t repay the money if your claim is unsuccessful.

There are specific fees that may be included in your lawsuit loan. We charge these fees for processing your pre-settlement loan and taking on the risk. Fees may include:

  • Processing fee
  • Origination fee
  • Underwriting fee
  • Delivery fee
  • Case management fee

Our contract will outline the fees associated with your loan.

What Information Is Provided in the Loan Agreement?

The lending terms and fees will be fully explained in the funding agreement that we provide to your lawyer. If you have questions about our fees, we are more than happy to answer them.

We pride ourselves on being one of the lowest-cost pre-settlement funding options available, and we want you to be entirely comfortable with our lawsuit funding services.

What Types of Cases Does Stonewood Funding Provide Lawsuit Funding for?

At Stonewood Funding, we believe that everyone should have the ability to obtain the money they are entitled to. We make it easy for you by servicing all types of personal injury cases. No case is too small or too big for us. Common types of personal injury cases that we provide funding for include:

  • Personal injury
  • Car accidents
  • Truck accidents
  • Motorcycle crashes
  • Pedestrian accidents
  • Wrongful deaths
  • Defective drugs or medical devices
  • Dog bites
  • Sports injuries
  • Construction accidents
  • Police brutality
  • Product liability
  • Maritime accidents

No matter what type of personal injury case you have, we will be able to help you. When determining the amount of pre-settlement funding you are entitled to, we carefully evaluate the extent of your injuries and how long you will be required to undergo treatment.

We also consider the impact of lost income and any impact your injuries will have on your ability to work in the future.

How Can I Qualify for Lowest-Cost Pre Settlement Funding?

Being injured and working with a lawyer to file a claim is enough to pre-qualify you for legal funding. Further qualification will be determined by the merits of your case and the supporting information you and your attorney provide us.

Our underwriting team will carefully consider all aspects of your case when deciding on the legal funding to offer you. Since pre-settlement lawsuit loans are not based on your credit, no credit check or investigation into your credit history is required.

Is Pre-Settlement Funding Guaranteed?

No, pre-settlement funding is not guaranteed. Before providing you with legal financing to cover your expenses while you are waiting for your case to settle, Stonewood Funding will need to understand the facts of your case and speak with your law firm.

You will have a better chance of obtaining funding if your case is strong and you have evidence of the facts concerning how you became injured. Documentation to support a claim will vary depending on the circumstances.

What Documentation Provides You with the Details Needed to Approve Me for Pre-Settlement Loans?

A police report is beneficial in automobile accidents. Notes from your doctor detailing the extent of your injuries and indicating the cause of the wounds also support your case.

When deciding whether your case qualifies for legal funding, we’ll make sure to evaluate all of the facts, any irregular circumstances, and the expected outcome of your case. If your claim is filed against your insurance company or someone else’s, we’ll consider the extent of the financial coverage provided under the policy.

What If I Need More Money While Waiting for My Case to Settle?

If you’ve been approved for pre-settlement funding while waiting on the outcome of your pending lawsuit, you may find that you need more money to cover your costs. We may be able to provide you with additional settlement loans depending on the circumstances of your case.

To obtain additional lowest-cost pre-settlement funding, you’ll need to go through the application process again. We’ll review the circumstances of the case again and have our underwriters determine whether additional money is warranted.

Why Do I Need a Lawyer to Obtain Legal Funding?

Working with law firms is essential to the outcome of your case. Personal injury attorneys know the ins and outs of local, state, and federal personal injury law. They can guide you through obtaining the most favorable lawsuit settlement based on the facts of your case.

We require that you work with a personal injury attorney when seeking a pre-settlement lawsuit loan. Doing so allows our underwriters and loan specialists to understand the circumstances of your case better and provide you with an appropriate level of funding while waiting for your case to settle.

Will I Need to Pay Anything Before Obtaining Legal Funding?

No. Legal funding companies such as Stonewood Funding offer you specialized loans at no upfront cost. There is no fee to apply, and if you are approved, you will not need to make any payments until your case is fully settled.

As we are a litigation funding company, the money you receive is entirely determined based on the facts of your injury claim.

What If I Lose My Case?

If you lose your injury claim and have obtained legal funding from us, you are not required to repay our lawsuit funding company. We will absorb the loss 100%.

However, if you win your case, the pre-settlement funding you obtained will be refunded to us from the amount you receive from your settlement. Your attorney will arrange for the transfer of funds to us to repay the pre-settlement loan.

What Can I Use My Legal Funding for?

A pre-settlement funding company provides you with the money you need to survive while waiting for your settlement. You can spend your loan on expenses such as medical treatments, medications, and physician visits.

If you cannot work due to the injuries you have sustained, lawsuit loans can help cover your rent, car payment, regular bills, and living expenses.

How Long Will It Take My Case to Settle?

All personal injury cases are different. Some cases may only require a few weeks to settle, while others may be in court for months. Your personal injury attorney will be able to provide you with an estimate of how long your personal injury case will be in court.

Why Should I Choose Stonewood Funding?

At Stonewood Funding, we believe that personal injury victims need all of the support they can get. We devised our legal funding company to provide financing to individuals who have been injured and need monetary assistance.

Since our pre-settlement lawsuit loans are based on the facts and circumstances of your case, there is no check to your credit required. Individuals with no credit history or bad credit are still eligible to receive lawsuit loans from Stonewood Funding.

To get started, apply for pre-settlement lawsuit loans online or by calling 844-544-3863.

Questions? Contact your local Los Angeles pre-settlement funding company today!

Apply Now

Need cash before your case settles? There is no fee to apply, and you owe us nothing if you lose your case.

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