What You Need To Know About Lawsuit Settlement Funding in New York

lawsuit settlement funding new york litigation loan

Many times, financial backup to cover lawsuit expenses is necessary. Consequently, a settlement loan, also called a lawsuit loan, might be a helpful thing to apply for lawsuit settlement in New York. These loans are applied for when your case is pending in court. 

Professional New York funding companies give their clients a cash advance on the expected settlement amount to deal with usual expenses like medical bills, mortgage or rent bills, property repair bills, compensating for lost wages, etc. As a result, it is beneficial to resort to pre-settlement funding options. 

How Do Settlement Loans Work? 

According to the New York Police Department (NYPD), tort claims were settled for $545.8 million in 2020. There were 21,311 personal injury and property damage claims in the same year. 

After filing an eligible lawsuit, the loan process starts with applying for a loan. A New York lawsuit funding company then evaluates the entire case. They check the applicant’s odds of winning the case and calculate approximately how much the applicant is expected to receive. With all this data, they then offer the applicant a cash advance. 

One must remember that settlement loans in NY have one thing in common with traditional loans. There are interests and fees attached that applicants need to pay once they receive the settlement amount. However, one does not need to make any payment unless the case comes to a closure or a judgment is provided. 

Reasons To Opt For Lawsuit Settlement Funding 

There are many reasons why one may claim a lawsuit settlement loan in NYC. Here are 3 of these legal and financial factors: 

1. Loans Help You Meet The Daily Expenditures 

The average cost of filing a lawsuit costs around $15 for a claim of $1,000 in the state. In most cases, applicants are found to be injured due to an accident or medical malpractice. Therefore, most of them are unable to work. This usually results in failing to meet the expenses of different bills. With the help of a loan for lawsuit settlement in New York, they can cover these costs even before the case is resolved. In other words, with the cash advance one receives, one can quickly pay medical or grocery bills, make car payments, pay mortgages, etc. 

2. A Loan That Doesn’t Ask For Your Credit Score 

One of the advantages of a settlement loan is that these companies do not consider your credit score when checking a loan application, unlike traditional loan companies. Instead, they focus on your chances of winning the case and reaching a settlement amount in your favor. 

3. Get More Time To Negotiate 

When in dire need of cash, one tends to go for the very first offer that the defendant offers. Maybe there could have been better offers if you had the time for negotiation. Having a lawsuit settlement loan in hand provides one with the breathing space and allows more time to reach a fair settlement. 


Lawsuits are a time-consuming and tedious process that can cost a lot of money. Therefore, when in doubt or with a shortage of finances, opt for loans against your lawsuit.

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