At Mustang Funding, pre-settlement funding is a non-recourse financial arrangement. This means that the funds are advanced to the plaintiff (the person filing the lawsuit) with the understanding that repayment is contingent upon a successful settlement or court verdict. If the lawsuit does not result in a financial award, the plaintiff is not required to repay the advanced funds, so you are taking on much less risk than you would with a traditional loan.
Mustang Litigation Funding provides best-in-class capital solutions for law firms, plaintiffs, litigation vendors, and other legal assets. Contact us today. We’d love to hear from you.
Alternatives to Pre-settlement Funding and Their Risks
There are several alternatives to pre-settlement funding, each with its own risks. Personal loans from banks or credit unions may offer lower interest rates but often require good credit and involve monthly repayments regardless of the case outcome. Borrowing from friends or family can provide flexible, low-interest options but risks straining personal relationships if repayment is delayed or the case doesn’t resolve favorably.
Negotiating payment plans with creditors can help manage existing debt without borrowing, but it requires creditor cooperation and may not address immediate cash needs. Using personal savings or retirement funds avoids interest and repayment obligations but can deplete financial reserves or incur penalties if withdrawing from retirement accounts.
Credit cards can offer quick access to funds for urgent expenses but come with high interest rates and the risk of accumulating unmanageable debt.
The Benefits of Pre-Settlement Funding
Pre-settlement funding is very safe. As noted above, your obligation to repay is contingent upon your legal success. With pre-settlement funding, the lender assumes all the risks.
Other benefits include the following:
- Does not affect your credit in any way: Good credit is not a requirement for pre-settlement funding, and applying for a lawsuit advance will not impact your credit.
- Helps cover living expenses during litigation: There is no deadline to settle a civil lawsuit, and some can take years to resolve. A lawsuit advance offers financial relief while you await a financial settlement.
- Does not require monthly payments: Unlike credit cards and personal loans, litigation advances do not have monthly payments. Instead, these funds are only repaid once your case is completed.
- Offers fast cash payments: Cash transfers for qualifying cases can be made anywhere from 24-48 hours after your application is approved.
- Typically has no restrictions on how you use it: From coverage of legal expenses to food, utilities, and other day-to-day bills, use pre-settlement funding as you see fit.
Contact Mustang Funding Today
Mustang Funding helps level the economic playing field so you can hold out until justice is served. We have streamlined the process with a simple, one-page application you can complete in just a few minutes. Get in touch to learn about how pre-settlement lawsuit funding works. Our ultimate guide to pre-settlement funding offers more in-depth information.
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.
