Post-settlement funding is a type of legal funding available when a settlement in a case has been agreed upon, but there will be some delay until distribution of the contingency fees.
It is used by plaintiff attorneys as a financing option for their business and offers some benefits over other types of legal and bank funding.
Why Do Settlement Fees Get Delayed?
Evan after a settlement agreement has been reached, payments can be held up due to things such as:
- Outstanding medical or government liens
- Waiting for court or administrative approvals
- Slow-paying defendants or insurers
- Structured settlements
- Various processing delays
These and other delays can last months, which can create cash-flow gaps for law firms that rely on contingency fees to operate their practice.
How Post-Settlement Funding Works for Attorneys
Post-settlement funding allows attorneys to access quick capital against those pending fees in delayed situations and have funds now to help run their firm.
Here’s how that actually works in practice:
- The attorney submits settlement documentation and fee information.
- Balanced Bridge reviews the case and determines an advance amount.
- Our legal funding expert sends you the terms to review.
- An agreement with terms of the advance are sent to the attorney and once signed and sent back, funding proceeds are sent out.
- The process typically takes a few days.
- Repayment occurs at the end, typically when settlement funds on the case are ultimately distributed.
Post-settlement funding is generally simpler and faster than other legal funding options, requiring less paperwork and qualification.
Key Advantages of Post-Settlement Funding
Post-settlement funding offers several benefits compared to other financing options:
- Generally, there is no need for extensive personal or business financial statements.
- Approval for an advance is based primarily on the settled case and fee documentation.
- Post-settlement funding offers faster access to capital than traditional lending products.
- Advances are designed specifically for post-settlement delays.
This makes post-settlement funding a practical option for firms needing short-term income while awaiting payment of their fees.
Is Post-Settlement Funding Available for Plaintiffs?
Yes. Post-settlement funding can also be used by plaintiffs who have received a settlement but are waiting for their award to be distributed.
In those cases, funding is provided against the plaintiff’s net settlement proceeds, rather than attorney fees.
Post-Settlement Funding with Balanced Bridge
Balanced Bridge specializes exclusively in post-settlement funding for attorneys and plaintiffs.
Our advances are structured to be among the lowest-cost options in the legal funding space, with funding decisions based on settlement documentation rather than personal or business financial statements. In many cases, funding can be completed within just a few days.
If you’d like to learn more about post-settlement funding and see if it makes sense for your firm, call 267-457-4540 or email info@balancedbridge.com to speak with one of our legal funding specialists.
