What to Know Before Taking Lawsuit Funding

Pre-settlement funding can be a real help when you are hurt and waiting on a case. But it is a financial decision, and it deserves care. Here is what we think every plaintiff should know before signing any funding agreement, including ours.

Start with your attorney

Your attorney knows your case better than anyone. Before you apply, let them know you are considering funding. They can tell you where the case stands, what may lie ahead, and whether funding makes sense for you. Every reputable funding company will need to work with your attorney anyway, so it helps to bring them in early.

Your attorney can also help you understand the agreement. Ask them to review it with you before you sign. This article is general information, not legal advice.

Questions to ask any funding company

• Is the funding non-recourse? You should owe nothing if your case is lost. Make sure the agreement says so clearly.
• How is the amount owed calculated? Ask how it changes over time and whether it is capped.
• Are there fees? Ask about application, processing, or delivery fees, and whether they are included in what you owe.
• What happens if my case takes longer than expected? Ask to see what you would owe at several points in time.
• What happens if my case settles for less than expected? Understand how the agreement handles a smaller recovery.
• Is the company licensed or registered where required? Rules vary by state.
• Who can I call with questions? You should be able to reach a real person.

A good company will answer every question plainly and put the answers in writing. If you feel rushed or confused, slow down.

Read the whole agreement

It sounds obvious, but many people only look at the amount they will receive. The terms matter just as much. Take time to read:

• The amount advanced to you
• Any fees and how they are charged
• How the amount owed grows over time
• The repayment schedule or chart, if one is included
• Your right to cancel within a certain period, if your state provides one
• What happens if you change attorneys

Many states require specific disclosures in funding agreements. If something is missing or unclear, ask about it before signing.

Take only what you need

This may be the most important advice we can give. It can be tempting to take the largest amount offered. But the more you take, the more will come out of your recovery later. Make a simple budget. Add up what you need for essentials, such as rent, utilities, food, transportation, and child care, for the next few months. Then ask for that amount.

If your case takes longer than expected and your needs grow, you can often apply for additional funding later, subject to underwriting approval. Starting small keeps more of your settlement in your pocket.

Be wary of pressure tactics

Watch out for any company that:

• Pushes you to sign the same day
• Will not explain its terms in writing
• Promises approval before reviewing your case
• Tries to cut your attorney out of the process
• Offers to steer you to a different lawyer

Funding should never interfere with your relationship with your attorney or your control over your case.

Know what funding cannot do

Funding does not make your case stronger or weaker. It does not speed up the legal process. It does not give the funding company any say in whether you settle. Its only purpose is to ease financial pressure while your case moves forward.

If you take funding from more than one company, the amounts owed can add up quickly and shrink your recovery. Be open with your attorney about any funding you already have.

How we approach it at Green Street Funding

We believe in clear terms and honest conversations. Our funding is non-recourse, so you repay only from a recovery, and if your case is lost, you owe nothing. We work directly with your attorney, we encourage you to take only what you need, and we are glad to answer questions before you sign. Availability varies by state.

You can review the kinds of cases we fund, and your lawyer can learn about our process on our attorney page.

When you are ready

If you have a pending injury case and have talked it over with your attorney, we would be happy to take a look. Apply online in a few minutes.

This article is general information, not legal or financial advice. Talk to your attorney about your specific case.

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