Is Litigation Funding a Loan?
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March 25, 2025
Litigation funding is not a loan; it is more accurately described as a cash advance. Legal disputes are often lengthy. Many victims whose injuries resulted from another party’s negligence cannot focus on their recovery because they need to pay their bills. Unlike traditional loans, litigation funding provides plaintiffs with financial assistance during the course of […]
Funding companies determine eligibility for pre-settlement lawsuit funding based on the strength of your lawsuit and the likelihood of a successful settlement or verdict. Key factors include the type of case (e.g., personal injury, workers’ comp), the severity of injuries or damages, and the defendant’s ability to pay. Unlike traditional loans, credit score and employment […]
Yes, you can obtain pre-settlement funding without your attorney’s consent, but it is generally beneficial to all involved parties to be on the same page as your attorney, especially since they are fighting for you to achieve the best outcome possible. However, in the case that you need move forward against your attorney’s opinion, here […]
Pre-settlement lawsuit funding provides financial support to plaintiffs while their lawsuit is still ongoing, helping cover living expenses, medical bills, or legal costs before a settlement or verdict is reached. In contrast, post-settlement funding occurs after a case has been resolved but before the plaintiff receives their payout, offering immediate access to a portion of […]
If you lose your case after receiving pre-settlement lawsuit funding, you typically do not have to repay the funds, as pre-settlement funding is non-recourse. This means the funding company absorbs the risk and only recovers its investment if you win or receive a settlement. Unlike traditional loans, pre-settlement advances are not dependent on credit scores […]
If you are a plaintiff in a personal injury claim or other legal case, a cash advance on your lawsuit can give you money in a matter of days, as opposed to waiting months (or even years) for your case to resolve. If your case is promising, and bills are piling up, this might be […]
Before choosing a pre-settlement funding lender, verify that they are licensed to operate in your state and have a proven track record in the industry—experience matters. A reliable lender will also be transparent about all fees and charges, ensuring no hidden costs. If you have questions about pre-settlement funding, make sure they are answered to […]
To learn more about attorney and law firm funding and its benefits for your practice, contact Mustang Funding today. Our team of experts has a combined 100+ years of experience in the finance industry and 50+ years in litigation finance.
Mustang Litigation Funding works with capital partners and affiliated entities to provide a non-recourse cash advance to an individual. All non-recourse cash advances are subject to review and approval. Not all cases or requests will qualify. Certain states regulate non-recourse cash advances and may disqualify an applicant from receiving a non-recourse cash advance from Mustang Litigation Funding or its partners/affiliates.
This web site is for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal, or investment advice. You should consult your own tax, legal, investment advisors before engaging in any transaction.