What are Settlement Advances?

settlement advance loans

Waiting for a lawsuit settlement can be stressful and frustrating.

As the American Bar Association (ABA) explains, personal injury claims can take months or even years to reach a final resolution.

At Ally Lawsuit Loans, we know your bills are not going to wait that long. This is where a settlement advance offers an answer. 

In the most simple terms, a settlement advance is a way to trade part of the future value of your lawsuit settlement or trial verdict for immediate cash funding.

In other words, a settlement advance can be a cost-effective way for plaintiffs to get some much-needed financial breathing room while they wait for the defendant or insurance company to take action. 

Lawsuit Settlement Advances: Three Important Things You Need to Know

Settlement Advance Funding is Not Technically A Loan

You may hear a settlement advance referred to as a lawsuit cash advance loan, a personal injury lawsuit loan, or pre-settlement funding.

Indeed, many different terms are used within the industry to describe the same thing.

Notably, while a settlement advance is often called a “loan”, that is technically a misleading term.

Pre-settlement funding is non-recourse funding. This means that you are not required to pay anything if your case never settles or you lose it in court.

Instead of getting a loan, plaintiffs are “selling” a portion of their settlement for a cash advance. 

Eligibility Depends on the Strength of Your Case 

You are not automatically qualified for settlement funding.

Eligibility for this type of cash advance will depend on the strength and total value of your legal case.

To be clear, this means that your credit history is irrelevant.

At Ally Lawsuit Loans, we do not do credit checks, nor do we require income verification or employment verification.

Your financial circumstances will not block you from getting access to the cash advance that you need. 

The Cost of Lawsuit Funding Matters

Finally, it is important to remember that lawsuit funding is not free.

While there are no monthly payments and you will owe nothing if you lose your case, you are selling a portion of your settlement.

It is imperative that you look for a lawsuit lending company that offers affordable, fair rates.

At Ally Lawsuit Loans, we are proud to provide plaintiffs with the lowest rate settlement advance funding— guaranteed. We look out for the financial interests of our clients.

Our team wants you to take only what you need to pay your bills and support your family while you wait for the settlement check. 

Apply for a Lawsuit Settlement Advance Today

At Ally Lawsuit Loans, we are committed to providing the lowest cost settlement advances to plaintiffs.

If you are interested in obtaining a cash advance on a pending lawsuit, we are here to help.

We encourage you to apply now— you may qualify in as little as 24 hours. Have specific questions?

Our top-rated customer service team is standing by, ready to walk you through all of the steps of the application process. 

Personal Injury Lawsuit Loans

| Read Time: 8 minutes

A personal injury loan is a financial tool that helps plaintiffs get cash pre-settlement. Unlike a traditional loan, the interest rate for lawsuit settlement advances is based on the strength of the case, not your credit history. They are also non-recourse which means if you lose your case, you do not owe repayment. According to data provided by the...

Read More

6 Critical Facts About Getting A Cash Advance On A Pending Lawsuit

| Read Time: 3 minutes

As with any financial decision, it's important that you get all the facts before making the decision to seek pre-settlement funding. Read to learn more about Pending Lawsuit Loans. If you're considering getting a pending lawsuit loan, you're not alone. Every day we provide cash advance on pending lawsuit settlements to plaintiffs across the county. Because civil lawsuits like...

Read More

Are Non-Recourse Loans Taxable?

| Read Time: 3 minutes

Non-recourse loans are not taxable and are treated differently by the IRS from recourse loans. Non-recourse loan tax consequences will be different from those of recourse loans.  Depending on the type of loan, you may still owe taxes on part of it even if you default. When a non-recourse loan defaults, is canceled, or is forgiven, the borrower is...

Read More