When a case concludes successfully, attorneys and law firms may still face delays before receiving their fees. This waiting period—between settlement and disbursement—can create financial strain, especially for firms that operate on contingency. To help maintain cash flow during this time, many firms turn to post-settlement funding. But one common question arises: Is post-settlement funding considered a loan?
Understanding the Difference Between a Loan and Post-Settlement Funding
Although post-settlement funding and loans may appear similar on the surface, they are fundamentally different in structure and purpose. A traditional loan is debt-based financing. It requires repayment according to a set schedule, regardless of whether funds from a settlement or judgment are ever received. Loans are often based on creditworthiness, collateral, and financial history.
Post-settlement funding, on the other hand, is not a loan. It is an advance on a confirmed settlement that your firm has already secured but will experience a delay in receiving. The risk is significantly lower, and repayment occurs only when the settlement funds are distributed. In other words, the funding is directly tied to your earned fees, not your credit score or firm’s financial statements.
Why Attorneys Use Post-Settlement Funding
Law firms, especially those operating on contingency, often experience uneven cash flow. Even after winning a case, it can take weeks or months for funds to be released due to administrative processes, insurance reviews, or court approvals. During this waiting period, expenses such as payroll, rent, and case costs continue to accumulate.
Post-settlement funding provides immediate working capital, allowing firms to maintain operations, invest in new cases, or distribute earned fees more quickly. It’s a strategic financial tool designed to help attorneys bridge the gap between settlement and payment.
The Balanced Bridge Funding Advantage
At Balanced Bridge Funding, we work with attorneys and law firms. Our approach is built around understanding the unique financial dynamics of legal practices. We offer transparent, efficient post-settlement funding designed to give your firm financial flexibility without the burden of traditional debt.
Our team handles the process quickly and professionally, reviewing settlement documentation and advancing funds—typically within days. Once the settlement proceeds are disbursed, the advance is repaid seamlessly.
Balanced Bridge Funding Will Go Above and Beyond for You
If your firm is waiting on settlement funds and needs capital to move forward, Balanced Bridge Funding can help. Our post-settlement funding solutions provide immediate liquidity without the constraints of a loan. Contact us today to learn more about how we help law firms nationwide by Bridging the Gap between settlement and payment.
To speak with one of our legal funding specialists immediately about post settlement funding for attorneys and law firms, please call 267-457-4540 or email info@balancedbridge.com. Or feel free to apply now online.
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Photo Credits
Warzone_in_Gulf_of_Mexico: Image of boats fire oil in ocean Burning and skimming operations in the Gulf of Mexico; By kris krüg – Flickr: Warzone, CC BY-SA 2.0, https://commons.wikimedia.org/w/index.php?curid=30526485
Thick_Oil_Washes_Ashore: Thick oil washing onto the shores of Louisiana; By Louisiana GOHSEP – Flickr: Thick Oil Washes Ashore, CC BY-SA 2.0, https://commons.wikimedia.org/w/index.php?curid=30526225
Turtle_Rescue_and_Rehabilitation: Capturing heavily oiled young turtles 20 to 40 miles offshore for rehabilitation; 14 June 2010; By NOAA’s National Ocean Service – Flickr: Turtle Rescue and Rehabilitation, CC BY 2.0, https://commons.wikimedia.org/w/index.php?curid=30525962
Defense.gov_photo_essay_100506-N-6436W-023: Oil from the Deepwater Horizon oil spill approaches the coast of Mobile, Alabama, 6 May 2010; By Petty Officer 1st Class Michael B. Watkins – This image was released by the United States Navy with the ID 100506-N-6436W-023 (next).
