How does this affect my attorney's fee?

It does not. Your attorney's contingency fee is calculated the same way; the advance is repaid from the client's share of the settlement.

Is a pre-settlement cash advance a loan?

No. It is non-recourse funding tied to your personal injury claim. There are no monthly payments, and if your case does not recover, you owe nothing.

Do I need good credit or a job to qualify?

No. AARC does not run a credit check and does not require employment or income verification. Approval is based on the strength of your claim and your attorney's representation.

How fast can I get funded?

Most approved applicants receive funds in as little as 24 hours once AARC has the case documents from your attorney.

How much does it cost?

AARC uses a flat fee rather than compounding monthly interest. Typical advances are $500, $750, or $1,000, and the illustrative payoff at settlement is 2x the advance amount.

Attorneys

Do Personal Injury Attorneys Recommend Cash Advances?

September 30, 2024 • 2 min read

Most experienced PI attorneys have worked with funding companies and understand exactly why and when an advance makes sense for a client.

Attorneys can't lend money to their clients — it's a violation of professional conduct rules in every state. So when a client is drowning financially, an attorney's only option to help is to refer them to a legitimate funding company.

Many attorneys actively encourage clients to consider funding when they see the client being pressured to accept a lowball settlement. An advance removes that pressure and lets the attorney negotiate from strength.

Reputable funding companies like AARC work directly with the attorney, never around them. The attorney signs an acknowledgment and handles repayment from settlement proceeds.

If your attorney has questions about AARC, we're happy to speak with them directly and answer anything they want to know about the funding agreement.

Why attorneys cannot just lend you the money themselves

Every state's rules of professional conduct prohibit attorneys from making personal loans to clients. The conflict of interest is obvious: a lawyer who is also your lender has personal financial incentives that compete with your best legal interests.

So when a client is financially struggling, an attorney's only real options are letters of protection (to providers) or a referral to a legitimate funding company.

The strategic value attorneys see in funding

Experienced PI attorneys know that the single biggest leverage point insurance companies have against their clients is time. A financially desperate client is a client willing to accept a lowball offer.

By relieving that financial pressure, funding allows attorneys to negotiate from strength. It is not unusual for the eventual settlement increase to exceed the total cost of the advance several times over.

What your attorney's role actually is

Your attorney signs an acknowledgment of the funding agreement and agrees to disburse the repayment from settlement proceeds. That is the extent of their obligation.

They have no liability for repayment if the case loses. They do not lose any portion of their fee. They simply add one more line item to the settlement disbursement at the end of the case.

If your attorney has concerns

We are happy to speak with any attorney directly to walk through the agreement and answer any questions about how the funding works.

A reputable attorney will never block a client from accessing funding — but they may rightly want to vet the funding company first. AARC welcomes that scrutiny.

Talk to AARC before you make a financial move you'll regret

Every situation is different, and the right answer depends on the specifics of your case, your timeline, and what you need the money for. The single best thing you can do is have a short, no-pressure conversation with someone who funds these cases every day.

Call AARC at (800) 297-3834 or apply online in about three minutes. There is no credit check, no obligation, and no cost to find out what you qualify for. If a cash advance isn't the right tool for your situation, we'll tell you that too.

Frequently asked questions

How does this affect my attorney's fee?: It does not. Your attorney's contingency fee is calculated the same way; the advance is repaid from the client's share of the settlement.
Is a pre-settlement cash advance a loan?: No. It is non-recourse funding tied to your personal injury claim. There are no monthly payments, and if your case does not recover, you owe nothing.
Do I need good credit or a job to qualify?: No. AARC does not run a credit check and does not require employment or income verification. Approval is based on the strength of your claim and your attorney's representation.
How fast can I get funded?: Most approved applicants receive funds in as little as 24 hours once AARC has the case documents from your attorney.
How much does it cost?: AARC uses a flat fee rather than compounding monthly interest. Typical advances are $500, $750, or $1,000, and the illustrative payoff at settlement is 2x the advance amount.

About the author

Written by the funding team at AARC — Accident Advance & Resource Center. AARC underwrites pre-settlement cash advances for personal injury claimants and works directly with plaintiff attorneys across 45 states. Our team reviews case documentation daily and writes from that firsthand experience.

This article is general information, not legal or financial advice. Always confirm details with your attorney. Contact AARC or call (800) 297-3834 with questions about your specific case.