Non-Recourse Pre-Settlement Funding Explained

If you’re involved in a personal injury lawsuit and struggling to pay bills while waiting for your case to settle, this episode is for you.

In this deep dive of The Legal Lifeline Podcast, host Aaron Winston—Strategy Director at Express Legal Funding—is joined by AI co-hosts Sam and Kim to explain everything you need to know about non-recourse pre-settlement funding, also known as a lawsuit cash advance.

We cover:

• What non-recourse pre-settlement funding is and how it works
• Why “non-recourse” matters and how it protects plaintiffs
• Who qualifies (and who doesn’t) for legal funding
• The key differences from traditional loans or payday lenders
• The pros, cons, and costs to consider before applying
• How this financial tool can give plaintiffs leverage in settlement negotiations

You’ll also hear why Express Legal Funding has become a trusted name in lawsuit funding, and how our non-recourse cash advances provide plaintiffs with financial breathing room while their attorneys fight for fair settlements.

Learn more about pre-settlement funding by visiting our guides:

• What Is Non-Recourse Legal Funding?
• What Is Legal Funding and How Does It Work?

About Express Legal Funding:
Express Legal Funding is a leading pre-settlement funding company that helps personal injury plaintiffs access fast, risk-free financial support while their cases are pending. Our non-recourse legal funding allows clients to stay financially stable without taking on debt. Learn more or apply at https://expresslegalfunding.com.

Disclaimer:
The information provided in this podcast is for general informational purposes only and should not be considered legal or financial advice. Always consult with your attorney before making decisions related to your lawsuit or funding options.

Connect with Us:
Website: https://expresslegalfunding.com
Twitter/X: @FundingExpress
LinkedIn: Express Legal Funding on LinkedIn
YouTube: Express Legal Funding Channel
Subscribe for more episodes and legal insights every week.

© Express Legal Funding LLC. All rights reserved.

Episode Transcript

(00:09):
Welcome to The Legal Lifelinepodcast, the official podcast
of Express Legal Funding.
I'm your host, Aaron Winston.
Each week we bring you clear,practical insights into the
world of law, personal injurycases and the financial
solutions that help peopleget through these tough times.
In today's episode, ourAI co-hosts, Sam and Kim,

(00:33):
break down non-recoursepre-settlement funding.
What it is, how it works andwhy it can be such an important
resource for plaintiffs waitingon their cases to settle.
Okay, let's unpack this.
Imagine you're right inthe middle of a lawsuit,
maybe personal injuryclaim bills are piling up.
Maybe you can'twork in the case.
It could drag on formonths, maybe even years.

(00:55):
What do you do?
Today we're doing adeep dive into something
called non-recoursepre-settlement funding.
We wanna really get whatit is, how it works as a
tool during litigation, right?
And it can be a reallypowerful, optional
lifeline for many people.
Our goal here in thisdeep dive is to give you
a super clear picture.
What is non-recoursepre-settlement funding?

(01:17):
How does it actually work?
And importantly, why isit so different from just
getting a regular loan?
By the end, you'll seeit's not just about the
money, it's also strategic.
Okay.
Let's get right to it then.
That name, non-recourse,pre-settlement funding.
It's kind of a mouthful.
What makes that nonrecoursepart such a big deal?
Well, at its core, it'sbasically a cash advance.

(01:37):
It's for plaintiffs peoplewith ongoing legal claims,
and it's based on whatthey expect to get from a
settlement or a court award.
But here's the crucial part.
The non-recourse bit.
Repayment is only required ifyou win or settle your case.
That's it.
If you lose your case,you owe nothing back.
Zero.
The funding companycan't come after you

(01:58):
personally for that money.
Wow.
Okay.
So that nonrecoursething completely
shifts the risk, right?
Like with a normal loan,the risk is all on you.
You pay it back, win or lose.
But here the risk about whetherthe lawsuit succeeds or fails.
Yeah.
That's entirely onthe funding company.
Exactly.
And that difference is,well, it's fundamental.
It means the funding companyis effectively placing a bet

(02:21):
on the success of your case.
And this really empowersplaintiffs, Think about it
without that crushing financialpressure, breathing down your
neck, you're not forced intotaking some low ball settlement
offer just to pay the rent.
It gives you breathing room.
It gives your attorney leverageto fight for the full value of
your claim instead of settlingout of sheer desperation.
That sounds incrediblyhelpful for someone backed
into a corner financially.

(02:43):
But how does theprocess actually work?
Is it like supercomplicated to get?
Actually, it's designed tobe pretty straightforward.
Usually it starts with you oryour attorney applying often
online or over the phone.
Just basic case info.
And importantly, there's nocredit check for you personally,
no upfront fees just to apply.
Okay.
No credit check.
That's interesting.

(03:03):
Then what?
Then the fundingcompany takes a look.
They evaluate your case,but they do this by talking
directly with your attorney.
They'll assess how strong theclaim seems, is liability clear?
What's the potential settlementrange look like If they approve
it based on the case merits,you get an agreement to review.
Once signed funds can be sentout really quickly, sometimes
within 24, maybe 48 hoursthat fast.

(03:26):
Yeah.
Okay.
And repayment, you said thatonly happens if you win.
Correct.
Repayment comes directlyout of the settlement or
the court award money, butonly if you win or settle.
If there's no recovery,there's no repayment.
Got it.
So who actuallyqualifies for this?
Is it available forAny kind of lawsuit.
That's a really important point.
Generally, no, not just anylawsuit, you need to have a

(03:47):
valid, pending civil lawsuit.
Most commonly, we see this withpersonal injury cases, things
like car accidents, slip andfalls, medical malpractice,
maybe wrongful death claims.
Those are typical.
The approval is based purelyon the strength and potential
value of your lawsuit itself,not your personal financial
situation or credit score.

(04:08):
You mentioned the attorney.
Yes, absolutely crucial.
You must be represented bya licensed attorney, and
typically that attorneyneeds to be working on what's
called a contingency feebasis, meaning they only get
paid if you win your case.
Plus, the attorney has tobe willing to cooperate,
share case documents, talkto the funder, and sign off
on the funding agreement.
Their involvement is mandatory.

(04:29):
Okay, so it providesthat immediate relief.
Shifts the risk.
Yeah.
But there has tobe a cost, right?
The funding company'staking on all that risk.
Mm-hmm.
What are thefinancial downsides?
The things a plaintiff reallyneeds to weigh up carefully.
You've hit on probably themost critical consideration,
and it's often, notfully grasped upfront.
While it's a lifeline,this funding is.
Typically expensive.
Very expensive.

(04:50):
Sometimes the fees aren'tsimple bank loan interest.
They're often structuredusing compounding rates.
This means the amountyou owe can grow quite
rapidly over time.
Compounding rates.
How does that work in practice?
Well, for example, an agreementmight have a rate of, say.
Three to 5% per month.
And that rate compounds.
So if your case drags onfor, let's say two years, the

(05:11):
total amount repaid from yoursettlement could potentially
double or even triple theoriginal advance amount.
This can significantly reduceyour final net recovery.
The money you actually walkaway with, sometimes the
funding costs can even endup being more than your
attorney's fees in a long case.
Wow, okay.
So that's a seriousfactor to consider.
Yeah.
It's not bad money.
It comes at a significantprice because of the

(05:33):
risk the funder takes precisely.
It's the cost associatedwith transferring that risk.
That's why it is absolutelyvital that you have your
attorney review the fundingagreement very, very
carefully, line by line.
You need to understand exactlyhow those fees are calculated,
how they accrue over the lifeof the case, and what the total
potential repayment could looklike under different scenarios.

(05:54):
That's such a critical point.
Transparency is key there.
Yeah.
So wrapping this up,understanding non-recourse
pre-settlement funding isn'tjust about knowing there's
a way to get cash upfront.
It's about recognizing it asa potential strategic tool.
One that can level the playingfield, maybe allowing plaintiffs
to resist financial pressureand really fight for the

(06:15):
justice they feel they deserve.
Exactly right.
The main benefits are clear.
You get immediatecash for necessities.
No hit to your credit,absolutely zero risk of
repayment if you lose your case.
And crucially, it reduces thatimmense pressure to settle
too early for too little.
But as we discussed, thetrade-off is that the funding
and its associated fees willreduce your final settlement

(06:36):
payout sometimes substantially.
It's a balancing act.
So what does this all mean foryou, the listener, thinking
about this option then?
It's not just financial,it's about power
dynamics in litigation.
It encourages you to considerhow might knowing this kind
of funding exists, changehow you or someone you know
might approach a legal battle.
Could it allow decisionsbased more on the merits of

(06:58):
the case rather than justimmediate financial need?
It's definitely a complextool, clear benefits,
significant costs,something to really chew on.