Are These Real Loans?

Settlement ‘loans’ are not traditional loans which are repaid on a schedule. So what are they? They are funds provided in advance of the settlement of lawsuit to meet the financial needs of an individual while their attorney pursues the highest level of compensation available.

A pre-settlement advance is not a loan as individuals do not repay it unless the lawsuit is won. Pre-settlement funding is a cash advance based on money an individual expects to receive from their lawsuit.

When a lawsuit plaintiff needs money to pay bills or cover living expenses while they are awaiting future compensation from a lawsuit a settlement loan is a good option. The funds from the loan provide financial security while awaiting the conclusion of the long legal process.

What It Is Not

You know what a pre-settlement loan is and should also understand what it is not.

  • It is not a settlement replacement.
  • It is not a traditional loan that must be repaid with interest.
  • It is not a structured settlement.

Limits on Pre-Settlement Funding

There are eligibility requirements in order to receive funding. Prior to receiving approval for a cash advance, DRB Capital will estimate the lawsuit value. Most structured settlement loan companies offer 15 to 20 percent of the estimated settlement amount. This provides funds 5o make ends meet while continuing to pursue the lawsuit.

Types of Claims Eligible for Loans

DRB Capital will determine eligibility for structured settlement loans. To be considered, your attorney will be asked provide some information about the lawsuit. Cash advances are possible for many types of lawsuits, but companies most often work with individuals who were demonstrably injured. The following are types of lawsuits that are frequently eligible for pre-settlement funding.

  • Personal injury
  • Wrongful death
  • Premises liability
  • Medical malpractice
  • Product liability

Understanding the Process

Once you understand you are pursuing a non-recourse cash advance, you should also know the steps of the process. Clarity and information are the foundations of sound financial decisions. The following are the steps for seeking pre-settlement funding.

Fill out application including supporting documentation from attorney
Company determines cash advance amount based on estimated value of claim and likelihood of winning lawsuit

Although the processing times can vary, companies like DRB Capital understand individuals need money as soon as possible and attempt to have a decision within five business days. To support the timely completion of the process, please ensure that both you and your attorney provide all requested documentation in the application.

Pros & Cons of Pre-Settlement Funding

As you are reading this, you may have found yourself in need of cash for medical bills and other expenses while you await the result of your lawsuit. At this point, you are considering whether or not you should pursue a settlement loan to meet financial needs.

There are many advantages to pursuing such a cash advance. Awareness of both the advantages and disadvantages ensures an informed decision. The following are the advantages of pre-settlement funding.

  • Cash advance covers immediate and urgent financial needs – no long waiting time
  • With pre-settlement funding, you can afford wait on a fair outcome and not settle for the first and lowest offer
  • You owe nothing if you lose the lawsuit.


As with almost any financial transaction, there are cons to consider when pursuing a structured settlement loan. We have broken down the cons, so you have a clear picture of what to expect.

  • You will need to pay fees and possibly interest for a pre-settlement cash advance.
  • Not all lawsuits are eligible for a structured settlement loan.

When Is Pre-Settlement Funding Appropriate?

If you are finding it difficult to make ends meet because you are unable to work or your income has been reduced due to your injuries, pre-settlement funding may be the right choice. Such a cash advance is also advisable when an individual is facing medical care expenses that are a direct result of their injuries.

We believe it is essential to know the facts before making a final decision. Although you have multiple options when choosing a pre-settlement funding company, DRB Capital offers honest, reliable services to help individuals gain access to the cash they need now.

After reviewing the information, we urge you to carefully consider your decision. Should you decide to pursue a pre-settlement cash advance, we recommend the services of DRB Capital.

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