Discussing How Funding Amounts Are Determined and What Factors Affect Them
When facing a legal battle, financial stress can quickly build up. Medical bills, daily living expenses, and other financial obligations don’t pause while you wait for your settlement. Pre-settlement funding offers a financial lifeline to plaintiffs, but one of the most common questions is: How much money can you actually get?
Understanding Pre-Settlement Funding Amounts
Unlike traditional financing, pre-settlement funding is based on the potential value of your lawsuit. Since this type of funding is non-recourse, meaning repayment is only required if you win your case, funding companies carefully evaluate the risks involved before determining the amount they can provide.
Key Factors That Affect Funding Amounts
Several factors play a role in determining how much pre-settlement funding you can receive:
1. Estimated Settlement Value
Funding providers assess your case’s potential settlement or verdict amount. Strong cases with substantial damages typically qualify for higher funding amounts, whereas weaker cases with uncertain outcomes may receive lower funding offers.
2. Type of Case
The nature of your lawsuit also impacts funding eligibility. Cases such as personal injury, wrongful death, medical malpractice, and employment disputes tend to qualify for higher funding amounts due to historically larger settlements.
3. Liability and Strength of the Case
If liability is clear and the evidence strongly supports your claim, a funding provider is more likely to offer a higher amount. Cases with disputed liability or weak evidence may limit funding eligibility.
4. Insurance Policy Limits
If the defendant has an insurance policy that covers damages, funding companies consider the policy limits. A high insurance policy limit can increase the amount of funding available to plaintiffs.
5. Stage of Litigation
Cases closer to settlement often receive higher funding amounts since the risk of non-repayment is lower. If your case is in the early stages of litigation, you may qualify for a smaller funding amount until more developments unfold.
6. Requested Funding Amount
Funding companies evaluate how much you request compared to your case’s estimated value. While some plaintiffs may receive a large portion of their expected settlement in funding, most companies offer a fraction of the projected final amount to ensure financial stability throughout the legal process.
How Much Can You Expect to Receive?
Pre-settlement funding typically ranges from 10% to 20% of the estimated case value. For example:
- A case with an estimated settlement value of $100,000 might qualify for $10,000 to $20,000 in pre-settlement funding.
- Larger cases valued at $1 million or more could receive significantly higher funding amounts, depending on the strength of the case and other factors.
Getting the Right Funding for Your Needs
It’s essential to borrow only what you need to cover necessary expenses like medical bills, rent, and daily costs. Taking out excessive funding can reduce the amount you ultimately receive from your settlement after repayment.
Arthur Funding: Transparent and Fair Pre-Settlement Funding
At Arthur Funding, we believe in providing fair and ethical pre-settlement funding to help plaintiffs maintain financial stability while they fight for justice. We work closely with you and your attorney to determine the appropriate funding amount tailored to your case’s specific needs.
If you need financial assistance during your lawsuit, contact Arthur Funding today to learn how we can help you access the funding you deserve.
