Pre-settlement funding is one of the most misunderstood financial products in the legal world.
Some people think it is a loan. It is not. Some attorneys worry it will interfere with their cases. It does not. Some plaintiffs assume they need good credit or a job to qualify. They do not.
This page explains exactly how pre-settlement funding works, what it costs, who qualifies, and what both plaintiffs and attorneys can expect from start to finish. No jargon. No runaround. Just a clear explanation of the entire process.
If you have questions after reading this, call us at 800-961-8924. We are happy to walk through anything that needs more clarity.
What Pre-Settlement Funding Actually Is
Pre-settlement funding is a cash advance against the expected proceeds of a pending lawsuit.
Here is the core structure. A plaintiff has a pending personal injury or civil rights lawsuit. The case has not settled yet. The plaintiff needs money now. We review the case, determine how much the claim is likely worth, and advance a portion of that expected recovery directly to the plaintiff.
When the case resolves, repayment comes from the settlement proceeds. The plaintiff’s attorney handles that repayment at closing. The plaintiff never writes a check or makes a monthly payment.
If the case does not result in a recovery, the plaintiff owes nothing. The funding company absorbs the loss entirely.
That last point is what makes pre-settlement funding fundamentally different from a loan. A loan must be repaid regardless of outcome. Our funding is only repaid if the case succeeds. That structure is called non-recourse financing and it is the defining feature of legitimate pre-settlement funding.
How It Differs From a Traditional Loan
This comparison matters because a lot of plaintiffs come to us having already tried and failed to get a bank loan. Understanding the difference helps explain why pre-settlement funding exists and why it works when traditional financing does not.
A traditional bank loan:
- Requires a credit check and minimum credit score
- Requires proof of income or employment
- Requires monthly repayments beginning immediately
- Must be repaid in full regardless of what happens in your lawsuit
- Adds to your personal debt load whether your case wins or loses
- Uses your personal assets or creditworthiness as collateral
Pre-settlement funding from ECO:
- No credit check required
- No employment or income verification required
- No monthly payments of any kind
- Repaid only from your settlement proceeds if your case wins
- If your case loses, you owe nothing
- Your case is the only collateral
The difference is not cosmetic. It is structural. A bank loan transfers all financial risk to the borrower. Our funding transfers that risk to us. We only get paid if your case pays out. That alignment of interests is exactly why pre-settlement funding makes sense for plaintiffs who cannot afford to wait and cannot afford to take on new debt.
The Complete Process for Plaintiffs
Here is a step-by-step walkthrough of exactly what happens from application of pre-settlement loans for plaintiff to funding.
Step 1: You Apply
The application process takes about five minutes.
Call us at 800-961-8924 or submit an online application through our website. We ask for your name and contact information, your attorney’s name and contact information, and a brief description of your case type.
You do not need to gather medical records, legal documents, or any paperwork at this stage. You do not need to describe your accident or injury in detail. The basic information is enough to get things started.
There is no cost to apply and no obligation to accept any offer we make.
Step 2: We Contact Your Attorney
Once you submit your application, our team reaches out directly to your attorney.
We request standard case information including the nature of the claim, an assessment of liability, estimated case value, current case status, and insurance coverage information available from the defendant. This is information your attorney already has readily available. For most attorneys, providing it takes less than 30 minutes.
We handle all communication with your legal team. You do not need to follow up, coordinate, or chase anyone down. We take care of that entirely.
Step 3: We Evaluate Your Case
Our underwriting team reviews the case information provided by your attorney.
We are looking at several key factors. How strong is liability? How severe are the injuries or damages? What is the estimated settlement or verdict value? What insurance coverage is available? How far along is the case in the legal process?
We do not look at your credit score. We do not look at your employment history. We do not look at your bank account. The case is the only thing we evaluate.
Most funding decisions are made within 24 hours of receiving case information from your attorney. Some cases involving complex multi-party litigation or unusual legal questions may take slightly longer.
Step 4: We Make a Funding Offer
If your case qualifies, we extend a funding offer.
The offer includes the advance amount we are prepared to provide, the fee structure and repayment terms, and a clear explanation of what repayment will look like at different settlement values.
We walk you through the terms in plain language before you sign anything. There are no hidden fees. No fine print designed to confuse. What we tell you upfront is exactly what applies when your case closes.
You have no obligation to accept the offer. If you decide not to move forward, there is no cost and no consequence.
Step 5: You Sign the Agreement
If you decide to move forward, you sign a funding agreement.
Your attorney typically reviews this agreement as well to confirm the repayment structure and ensure there are no conflicts with your fee arrangement. We welcome attorney review. It protects everyone and it keeps communication clean.
Step 6: You Receive Your Funds
Once the agreement is signed, we wire funds directly to your bank account.
Most clients receive their money the same day the agreement is signed. In some cases the transfer completes the following business day. We move as quickly as possible because we understand that the reason you applied is that you need the money now, not next week.
Step 7: Your Case Continues Normally
Your lawsuit proceeds exactly as it would without our involvement.
We have no input on your case strategy. We do not participate in settlement negotiations. We do not communicate with opposing counsel. We do not tell your attorney what to do or when to settle.
Your attorney continues working toward the best possible outcome for you on their own timeline and according to their own legal judgment. The funding is a separate financial arrangement that runs alongside your case without touching it.
Step 8: Repayment at Case Closing
When your case settles or results in a verdict in your favor, your attorney handles repayment from the proceeds.
At closing, your attorney disburses funds according to the settlement breakdown, which typically includes attorney fees, case costs, our repayment, and your net proceeds. The repayment amount is the advance plus applicable fees, calculated according to your agreement.
You do not write a check. You do not make a payment. Your attorney handles the entire transaction at closing.
If your case does not result in a recovery, the funding agreement closes with no balance owed. We absorb the loss entirely.
The Complete Process for Attorneys
Pre-settlement funding is designed to work smoothly alongside your legal representation. Here is what the process looks like from the attorney’s perspective.
What We Need From You
When your client applies and we reach out, we typically ask for:
- A brief description of the case type and facts
- Your assessment of liability and damages
- The estimated case value or settlement range
- Current case status and expected timeline
- Available insurance coverage from the defendant
- A copy of the retainer or fee agreement if required by your state bar
This is standard information you already have for any active file. Most attorneys are able to provide it within a business day.
What We Do Not Do
We do not interfere with your case. We do not contact opposing counsel. We do not attempt to influence settlement negotiations or case strategy. We do not have any interest in how or when your case resolves beyond waiting for it to close successfully.
We also do not pay referral fees, provide attorney compensation of any kind, or engage in any financial arrangement with legal representatives. Our relationship with your firm is professional and limited to coordinating the funding transaction.
Attorney Fee Agreements and Funding Compatibility
Pre-settlement funding is compatible with contingency fee arrangements in every state where we operate. The repayment of our advance comes from settlement proceeds at closing alongside your attorney fees and case costs.
Before approving funding on any case, we confirm that your client’s fee agreement permits the use of third-party litigation funding. Most contingency agreements include this language. In states with specific bar rules around litigation funding disclosure or assignment of proceeds, we follow applicable requirements and work with you to ensure compliance.
What Happens at Closing
Your client’s settlement proceeds are disbursed according to the closing statement. Our repayment is one line item in that statement alongside your fees and case costs.
We send you our payoff amount in advance of closing so you have everything you need to prepare the disbursement. The process is clean and straightforward. If the settlement is less than anticipated and there are questions about the repayment calculation, we work with you directly to resolve them.
What Pre-Settlement Funding Costs
Pre-settlement funding costs more than a traditional bank loan. That is the honest answer and it is worth understanding why.
When we fund a case, we take on genuine financial risk. If the case loses, we receive nothing. That risk is priced into the cost of the capital. It is not arbitrary. It reflects the reality that a meaningful percentage of funded cases do not result in recovery.
Our fee structure is based on a fixed rate that accrues over the life of the case. Longer cases result in higher total repayment than shorter cases because the fee accrues over more time. All fees are disclosed clearly in writing before the agreement is signed.
We do not charge application fees. We do not charge processing fees. We do not charge fees to apply, to have your case reviewed, or to decline a funding offer after review. The only cost is the repayment amount specified in your agreement, which applies only if your case pays out.
Before you sign any agreement, we will show you exactly what repayment looks like at your anticipated settlement value. You will know the numbers before you commit to anything.
What Makes a Case Qualify
Our underwriting process focuses entirely on case strength. Here is what we look at.
Liability
Is it clear that someone else caused your injury or damages? Cases with strong, documented liability qualify more easily and often qualify for higher funding amounts than cases with disputed or complex liability.
Injury and Damages
How serious are your injuries? How significant are your documented damages? More severe injuries and larger documented losses generally support higher case values and larger funding amounts.
Insurance Coverage
Is there adequate insurance coverage available from the defendant to support a meaningful recovery? Cases where the defendant is uninsured or underinsured may present challenges depending on the specific facts.
Attorney Representation
You must have an attorney actively working your case. We do not fund unrepresented plaintiffs. Your attorney’s involvement is both a qualification requirement and a quality signal that your case has been evaluated as viable by a legal professional.
Case Stage
Cases at any stage can qualify, from early filing through advanced negotiation. Cases closer to resolution may qualify for slightly different terms than cases in early stages, but no specific stage is required to apply.
What We Do Not Look At
Credit score. Employment status. Income. Personal financial history. Bank account balances. None of these factors play any role in our funding decision.
Case Types We Fund
We work with plaintiffs across a wide range of personal injury and civil rights cases. Here are the most common categories:
- Car, truck, motorcycle, and vehicle accident cases
- Pedestrian, bicycle, and rideshare accident cases
- Slip and fall and premises liability cases
- Construction site and workplace injury cases
- Workers compensation and third-party workplace injury claims
- Medical malpractice and healthcare negligence cases
- Sexual abuse and institutional abuse claims
- Police brutality and civil rights cases
- Wrongful death claims
- Product liability and defective product cases
- Mass tort and class action claims
- Wildfire and property damage lawsuits
- Insurance bad faith claims
If your case type is not listed here, call us at 800-961-8924. We will give you a direct answer about whether we can help.
State Availability
We provide pre-settlement funding to plaintiffs in most states across the country.
Some states have specific regulations that govern how pre-settlement funding is structured, what fees can be charged, and what disclosures are required. We comply with all applicable state laws and regulations wherever we operate.
State-specific legal factors including damage caps, comparative or contributory fault rules, and government claims procedures can also affect how we evaluate cases from certain states. Our team has experience with the legal frameworks in states across the country including New York, Texas, California, Florida, Virginia, New Jersey, Illinois, and many others.
Call us at 800-961-8924 to confirm availability and applicable terms in your specific state.
Frequently Asked Questions
How long does the entire process take from application to funding?
Most applicants go from initial application to funded cash within 24 to 48 hours. The speed depends primarily on how quickly your attorney is able to provide case information after we reach out.
Does pre-settlement funding affect my credit score?
No. We do not run a credit check and the funding does not appear on your credit report. Your credit score is completely unaffected at every stage of the process.
Will the defendant or their insurance company find out I received funding?
In most cases, no. Pre-settlement funding is a private financial arrangement between you and our company. It is not disclosed to opposing counsel unless you or your attorney choose to disclose it or a court specifically requires it.
Can I get additional funding if I need more money later?
Yes. If your case is still pending and the remaining expected case value supports it, you may apply for a second advance. Call us at 800-961-8924 to discuss your options.
What if my attorney advises against getting funding?
That is worth taking seriously. Some attorneys counsel caution around pre-settlement funding because repayment reduces the net amount their client receives at settlement. That is a legitimate consideration. The decision is ultimately yours. We encourage open communication with your attorney before making any decision.
Can my attorney reach out to discuss how the process works?
Absolutely. Attorneys are welcome to call us directly at 800-961-8924 with any questions about our process, terms, or how we handle specific case types. We welcome those conversations and find that attorney-to-attorney communication makes everything smoother for everyone involved.
Ready to Get Started?
Now that you understand exactly how the process works, taking the next step is simple.
Call us at 800-961-8924 or apply online. The application takes about five minutes. We contact your attorney, review your case, and get back to you with a funding decision within 24 hours. If your case qualifies, money can be in your account the same day.
No cost to apply. No obligation to accept. No repayment if your case does not pay out.
Call 800-961-8924 now or apply online to get started.