What Is Post Settlement Funding?
What Is Post-Settlement Funding?
Post-settlement funding is a financial product available to both plaintiffs and attorneys after litigation reaches a resolution and is entirely risk-free.
Post-settlement funding is often referred to as a lawsuit loan or a settled case lawsuit loan, but post-settlement loans are not loans at all. All settled case funding is non-recourse. This means there are no monthly payments and no risk. If the defendant defaults on payments, for instance, you will not need to repay your advance unless you collect from the defendant.
Whether you’re a plaintiff looking to leverage your compensation or an attorney looking to leverage your contingency fees, post-settlement funding allows you to secure upfront capital against an upcoming settlement award.
How, then, can you get the liquidity you need?
What Does Post-Settlement Funding Mean?
If you are a plaintiff involved in a lawsuit, the defendant in your case will typically pay you a portion of the total settlement amount after the case is resolved and a settlement is agreed upon. This will not normally be the total settlement amount. The law does not require a defendant to make full payment by a given deadline. As a result, wait times can vary from weeks to years.
Post-settlement funding can help plaintiffs struggling to meet expenses while waiting for a settlement to arrive. You could have a cash advance in as little as 24 hours after applying. In most cases, you will receive funds a few days after successfully applying for a lawsuit cash advance.
Post-settlement funding can also be useful for some attorneys. Lawyers working on contingency fees can leverage these fees, obtaining capital to fund their law firm rather than waiting for cases to resolve. With such wide gaps between settlements and payouts, post-settlement funding can dramatically improve cash flow.
From small law firms looking to fuel growth to larger firms seeking to maintain a competitive edge, post-settlement funding can help operations run more smoothly.
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Why Consider Post-Settlement Funding?
When your case has been favorably settled but you still find yourself struggling to meet all your expenses, post-settlement funding offers a risk-free route to getting cash quickly without resorting to a traditional bank loan.
This non-recourse financing tool can also be beneficial if you are unable to qualify for a regular loan. With post-settlement funding, there is no credit check, and you won’t need to verify your income or prove employment status.
Advantages of Post-Settlement Funding
The speed of delivery is perhaps the key benefit of settlement funding, with funds made available in as little as 24 hours after application.
Most personal injury cases take months to settle, and some can take years. Mass tort cases and class actions drag on even longer, as they typically encompass multiple jurisdictions. Commercial litigation is also protracted and complex.
Even when your case has settled, you could still face a lengthy wait for your money. Claims awarded in court sometimes call for a review period and may go through an appeal. All the while, costs keep mounting for the plaintiff.
If you have a settled claim and are waiting to receive compensation from litigation, a settlement loan could bridge the gap.
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How Much Does Post-Settlement Funding Cost?
The interest rates and fees you can expect to pay will vary depending on the funding company and the facts of the case.
Some companies charge sky-high fees and interest rates as high as 588% per year. At the low end, interest rates could be as low as 15% every 6 months. Uplift Legal Funding can offer 15% every 6 months for settled claims.
There is a marked difference in the fees and interest rates charged for pre-settlement loans and post-settlement cash advances. This is due to the risk.
When you apply for a lawsuit loan and your case is just starting out, the lender assumes the risk that you might not win your case or that you will end up receiving less compensation than anticipated. This risk is reflected in high interest rates.
With post-settlement cash advances, by contrast, the lender’s risk is sharply reduced. You already have a settlement agreement in hand, and you are simply waiting for the funds.
How Can I Qualify for Post-Settlement Funding?
To qualify for post-settlement funding, you must be the plaintiff in the case and not the defendant.
You also need to have been awarded a claim and expect a settlement as compensation.
The following cases all qualify for post-settlement funding:
Once you have settled your case, you will know how much compensation you can expect to receive.
You will need to assemble the following:
- The amount of funding you are requesting from the lending company
- A letter from your attorney stating how much your case settled for
- A copy of the letter from your attorney to the insurance company outlining their obligation
- A copy of the executed general release
The more responsive your lawyer is in handling this documentation, the sooner you could receive post-settlement funding. Get the help you need now rather than waiting for your award to arrive.
[RELATED]: What Is Settlement Funding?
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By
Jared Stern
Updated 6/8/2026
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