There are many reasons your pre-settlement loan may be denied, including weak evidence in your lawsuit, liability issues, a low expected settlement amount, or your attorney’s reluctance to cooperate.
The good news is that one denial is not the end of the story. Even if you have previously been unable to get a pre-settlement loan (more accurately, pre-settlement funding, since it is not actually a loan), your eligibility may improve as circumstances evolve.
Consider these three common reasons pre-settlement funding gets denied—and the circumstances under which that initial decision might be reversed.
Your Expected Settlement Is Uncertain
If your case is in its early stages, it may be difficult for a pre-settlement funding company to gauge the eventual likely outcome.
How that can change: As your case progresses, the likely outcome will become clearer. If the case picks up momentum, whether through mediation, arbitration, or other means of settlement, it may signal a faster resolution, making it more attractive to a lender.
Your Attorney Is Reluctant to Cooperate
Your attorney must agree to your pre-settlement funding agreement. Even if a funding company wants to fund your case, it cannot do so without the cooperation of the plaintiff’s attorney.
How that can change: Your attorney may be opposed to pre-settlement funding because they are not yet convinced of the strength of your case. If your case suddenly becomes more likely to succeed, they may then give you the green light to receive a lawsuit loan. Alternatively, it may be that the right pre-settlement firm hasn’t approached your attorney and framed the matter in the most constructive way.
Your Case Is Not Strong Enough
A pre-settlement funding company is unlikely to work with you if the evidence in your case is weak, if liability on the part of the defendant isn’t clearly established, or if your case appears deficient in some other way.
How that can change: If new evidence is uncovered, eyewitnesses are found, or some other positive development enters the equation, a pre-settlement funding company may choose to approve your application.
The Right Firm Makes a Difference
Working with a top pre-settlement lawsuit funding company like Mustang Funding can be the difference between a denied request and an approved one. With more than 50 years of combined experience in litigation funding and more than 10,000 checks issued, we know why funding gets denied, and we know what to look for in determining if that initial denial may ultimately be subject to reversal.
Learn more about how pre-settlement funding works or read our ultimate guide to pre-settlement funding to help you decide if this option is right for you.
Get Started Today
An initial denial of pre-settlement funding does not have to be the end of the story. Talk with one of our lawsuit funding experts today to learn if a second look at your case is warranted.
