Wednesday, July 17, 2024

Post Settlement Funding: All That You Need to Know About it

Post-settlement funding is a type of loan that you can avail of while you are waiting for the settlement check to arrive. These loans are very similar to a pre-settlement loan where the lending company funds you while you wait for the case to be resolved. It’s a non-recourse loan, and you will not be responsible for repaying it. The settlement financing company will make sure to regain the amount from the insurance company or the defendant. If you avail of this loan, you get the money right away.

You have to have a lawyer representing your case to qualify for a post-settlement loan. Personal injury lawsuits, medical malpractices, auto accidents, and injury at the workplace due to your company’s fault – all such cases qualify for post-settlement funding. Once your lawsuit gets resolved and you get to know about the settlement offer, the process of applying for the loan becomes very easy. The funding company will issue the loan based on your settlement amount.

Documents needed

While applying for the loan, you will need –

  • the settlement agreement letter that your attorney will be having
  • a copy of the information stating the amount of the settlement that was sent to the insurance company

Everything is handled by your lawyer. But be careful of the money that you seek to have from the funding company. It is so because you will have to pay interest on the principal amount of the post settlement loaning, along with other associated charges. But its interest rate is considerably lower than a pre-settlement loan as there is less to no risk involved.

Why do people opt for a post-settlement loan?

When you breathe a sigh of relief after the negotiation or settlement of your personal injury lawsuit and think that all your worries have come to an end, well, the harsh truth is that it’s not the end. After winning the case, you would be expecting the settlement money to arrive sooner to regain your financial stability. But it is not always that easy. There may be a delay in the process, and your expenses can start to mount. It becomes really frustrating at times, but such situations are beyond your control. People are then compelled to apply for a post-settlement loan.

How long do you have to wait for the check to arrive? 

Some settlements take three weeks to pay out the amount, while others may take up to six weeks or even longer. That’s a long waiting period for someone who has to take care of the pending bills and other expenses.

Possible reasons for the delay 

Some reasons are –

  • Your lawyer may have been busy dealing with other cases.
  • You might have received the settlement agreement, but you are yet to sign it.
  • There may be issues in the claim adjuster’s office, and they couldn’t get back to you on time.
  • Some authorities like the hospitals might have requested a hold on your money as you owe money to them.


You can know whether you qualify for a post-settlement loan within 24 hours of applying from the loan funding company. All you need is the required documents to be in order, and your competent lawyer will know how to go about with the process.

Lindsey Ertz
Lindsey Ertz
Lindsey, a curious soul from NY, is a technical, business writer, and journalist. Her passion lies in crafting well-researched, data-driven content that delivers authentic information to global audiences, fostering curiosity and inspiration.

Related Articles