When a plaintiff or attorney secures a case, there is often a delay before the funds are disbursed. That’s where post-settlement funding comes in. But how does it differ from pre-settlement funding? Understanding the distinctions is key if you’re evaluating financing options in litigation. Balanced Bridge helps bridge the gap between settlement and your award.
What Is Pre-Settlement Funding?
Pre-settlement funding (sometimes called litigation advances or lawsuit advances) provides cash to a plaintiff during an active lawsuit—before the case is resolved. The funder assesses the strength of the case and advances an amount against the expected settlement or judgment. Notably:
- It is typically non-recourse, meaning if the plaintiff loses, they owe nothing.
- Approval is based on the merits of the case—not on credit score, employment history, or collateral.
- The repayment is made from the eventual settlement proceeds, plus fees or interest.
- It helps plaintiffs manage living costs, medical bills, or financial pressure while their case is pending.
Pre-settlement funding is often used when plaintiffs cannot wait the many months or years it may take for litigation to conclude.
Pre-settlement funding for attorneys on a single case is typically difficult to come by. There are legal funding firms that offer a variety of attorney funding on pending cases, but usually more in the form of lines of credit on a portfolio of cases.
What Is Post-Settlement Funding in Pennsylvania?
Post-settlement funding comes into play after a settlement has been reached, but before the funds are fully disbursed to the parties. At that point, plaintiffs or attorneys can sell a portion of the future payout or attorney fee to a funder such as Balanced Bridge Funding to receive liquidity immediately.
Key distinctions include:
- Because the case is already resolved, the risk is lower than with pre-settlement funding and costs are cheaper.
- The funder purchases future proceeds rather than assuming litigation risk.
- Delays in distribution due to administrative or disbursement hold-ups are common, so this advance bridges the gap.
- It is available to both plaintiffs and attorneys (i.e. advances on contingency fees) once settlement is reached but not necessarily, final.
Key Differences at a Glance
| Feature | Pre-Settlement Funding | Post-Settlement Funding |
| Timing | Before final resolution | After settlement but before payout |
| Risk | Higher, since case outcome uncertain | Lower risk, case already resolved |
| Qualification | Based on merits and expected value | Based on enforceable settlement |
| Purpose | Bridge during litigation | Bridge distribution delays, immediate liquidity |
| Repayment | Repayment From settlement (if won) | From the disbursed settlement proceeds |
Why Post-Settlement Funding Matters in Pennsylvania
Even after a successful outcome, plaintiffs and attorneys can’t always wait weeks or months for funds. Delays in administrative processing, court approvals, or escrow clearance are common. Post-settlement funding ensures you don’t remain cash-strapped while waiting.
If you or your firm have a settled case but are still waiting for distribution, Balanced Bridge Funding can offer customized, non-recourse advances to convert that future payout into present cash flow.
Talk to one of our legal funding specialists about post settlement funding for attorneys, please call 267-457-4540 or email info@balancedbridge.com.
Ready to turn your delayed settlement into working capital today? Fill our quick application form and explore your post-settlement funding options, let us help you access your funds when you need them, and help bridge the gap between fee payments.
