How Do Pre-Settlement Funding Companies Value Your Case?

by | Feb 1, 2023 | Frequently Asked Questions | 0 comments

Understanding What Factors Determine Your Pre-Settlement Funding Amount

If you have a pending lawsuit then you have probably been told that it takes a long time for cases to resolve. Unfortunately, most people who have been injured in an accident cannot afford to wait for a fair settlement in their case. They end up settling their case for significantly less than it is worth so that they can pay their bills. 

Pre-settlement legal funding helps to bridge the gap between the date of the injury and the final payout from the lawsuit. However, you might be wondering how much you will receive. At Triumph Legal Funding, we make pre-settlement legal funding fast and easy. We are transparent about our process and work endlessly to ensure that we help as many people as possible.

To find out how we may value your case, contact our office at (973) 362-3500 to speak to a member of our team.

Factors Used in Determining Pre-Settlement Funding Amount

It is important to remember that pre-settlement funding is not a traditional loan. It is not based on your credit score or your income. It is a lawsuit advance that is based on the circumstances of your case. Generally, you receive a portion of your expected settlement.

Factors that may be considered when determining the pre-settlement funding amount:

  • Who caused the accident;
  • Whether you were partially to blame;
  • The extent of your injuries;
  • The likelihood of your case being successful at trial;
  • How long your case is expected to last;
  • How much evidence is available in your case;
  • If your damages are provable; and
  • Whether the liable party can afford to pay.

Pre-settlement funding companies typically lend a certain percentage of the expected recovery in the case. Many have a cap on the amount of money that they will extend in a single case or at one time. A funding company will speak to your attorney to determine the anticipated damages in your case and will use that number to determine how much funding to provide.

Can I Receive My Entire Anticipated Settlement Amount?

Most pre-settlement funding companies will only lend a portion of your expected recovery amount. It not only protects them by mitigating their risks, but it also protects you. The compensation you receive from your personal injury case may include money to cover future medical treatment or other costs down the road. 

If you receive all of the money upfront you may not be able to afford these expenses later on. By only receiving a portion of your settlement to cover your current out-of-pocket expenses, you can ensure that you have the money you need now and in the future. 

Additionally, a portion of your recovery will likely be designated to court costs, attorney fees, liens, and other expenses that were paid during litigation. 

Get the Funding You Need Now

If you have a pending lawsuit but need money now, contact our office at (973) 362-3500 to discuss how we can help. You can also apply now online. Approval is fast, easy, and risk-free.