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 their lawsuit without requiring monthly repayments or the risk of owing money if their case is lost. That is where pre-settlement funding can make all the difference in your quality of life while you wait for your personal injury lawsuit to settle.
At Mustang Funding, litigation funding helps level the economic playing field against deep-pocketed defendants and insurance companies. The future settlement serves as collateral. Contact us today to learn more–our team members are always within reach and ready to talk whenever your funding needs arise.
How Litigation Funding Differs from Traditional Loans
Here are the key differences that set litigation funding apart from traditional loans:
Litigation Funding Is Non-recourse
Traditional loans carry the risk of debt, requiring repayment regardless of the case outcome. However, litigation funding is non-recourse, meaning you owe nothing if you lose your case. The funding company absorbs the loss, not you.
Funding Is Based on the Merits of Your Case, Not Credit Score
Traditional loans are typically approved based on your credit score, income, and financial history. You may not qualify for a loan if you do not meet the lender’s criteria. With litigation funding, your approval is based on the strength of your case. If your case has merit and a high likelihood of success, you could qualify for funding regardless of your personal finances.
No Monthly Payments
With traditional loans, you are typically required to make monthly payments regardless of the outcome of your case. Litigation funding, however, does not require any monthly payments. Repayment is only due if your case settles successfully.
Faster Approval Process
Applying for a traditional loan involves extensive paperwork, credit checks, and income verification. The application process at Mustang Funding can take less than two minutes. It is free, and there are no hidden fees or charges. After submitting your application, one of our team members will promptly assist you. Once approved, you generally receive your funds within 24-48 hours.
Typically No Restrictions on How You Spend the Money
Unlike loans, which may have restrictions on how the money is used, litigation funding at Mustang Funding can be used for mortgage payments, tuition bills, medical expenses, and daily living expenses while you await a fair settlement.
Contact Mustang Funding Today
Mustang Funding is a litigation finance company focused on high-quality, transparent capital solutions for law firms and their clients. Our team of experts has a combined 100+ years of experience in the finance industry and 50+ years in litigation finance. You can learn more about how pre-settlement funding works by exploring our ultimate guide to pre-settlement funding.
About Mustang Funding
Mustang Funding, founded in 2018 and based in Wayzata, MN, is a litigation finance company dedicated to empowering individuals and law firms nationwide with transparent and innovative financial solutions. With over $170 million funded, 10,000+ checks issued, and more than 3,000 cases financed, Mustang provides plaintiff pre-settlement funding, law firm financing, and commercial funding to meet diverse client needs. Their commitment to transparency, integrity, and expertise sets them apart, offering tailored financial support to plaintiffs, businesses, and legal professionals. By bridging capital gaps and fostering access to justice, Mustang Funding continues to lead the legal asset investment industry with a strategic, inclusive, and forward-thinking approach.
