What is Pre-Settlement Funding? Pre-Settlement Funding is the process of advancing capital to personal injury plaintiffs with pressing financial needs. These needs often arise as a result of the “waiting game” played by insurance carriers during the settlement process. For the injured victim, it may take several months to be released from their doctor’s care. During this time, scarce financial resources are quickly depleted. Having no other reserves to fall back on, and with banks and other traditional capital sources unwilling to help, plaintiffs find themselves under duress to accept an unreasonable or unfair offer of settlement from the insurance company. Pre-Settlement Funding helps to solve this dilemma by filling a need the banking industry will not address. By stepping up to the plate, when no one else will, the plaintiff can now afford the “waiting game” thus providing their attorney with the necessary breathing room to arrange an equitable settlement. Pre-Settlement Funding is not a loan because the advance is not guaranteed or “period-certain”. Settling a personal injury case requires an undetermined period of time. No payments are required and if the case fails to be resolved (as a result of the litigation), the plaintiff has no obligation for repayment. As a Litigation Funder you accept this risk. You are also aware that your greatest risk is not at the time of funding but rather, at the time of settlement or repayment. This is why your fees can range as high as 100% or more. Transactions will typically be in the $500 to $5,000 range. It won’t be unusual for requests to be higher. Your success in recouping your investment will lie in your ability to analyze cases, evaluate risk and translate these factors to an offer or refusal of capital. Keep in mind that many requests are fundable at some level.. always seek to figure out how to say “yes” without assuming unnecessary risk. Our SmartCALC™ system will help you do this.