Education
Five Questions to Ask Before Taking a Cash Advance
• 2 min read
Pre-settlement funding helps a lot of people, but it isn't for everyone. Run through this checklist before you apply.
One: Have I exhausted no-cost options? Talk to your attorney about whether your medical providers will accept a letter of protection (delayed payment from settlement).
Two: Do I actually need the money now? Funding has a cost. If you can comfortably wait, waiting saves money.
Three: Am I borrowing the minimum I need? Smaller advances cost less. Don't borrow against future settlement money you don't need today.
Four: Does my attorney know? You don't need their permission, but they should know — they'll be handling the repayment at settlement.
Five: Do I understand the agreement? A reputable funding company will walk through every term with you and answer every question.
Question one — have you exhausted free options?
Free or low-cost options should always come first: letters of protection from your attorney, hardship arrangements with providers, charitable assistance, family help if available.
Funding has a cost. If a free option will work, take the free option.
Question two — do you actually need it now?
Funding costs scale with how long the money is outstanding. If you can comfortably wait, waiting saves money.
If you cannot wait without serious consequences — eviction, treatment interruption, vehicle loss — funding is the right tool.
Question three — are you borrowing the minimum?
Smaller advances cost less. Resist the urge to borrow extra 'just in case.' You can always come back for more later.
Match the advance amount to the specific financial need it is solving.
Question four — does your attorney know?
You do not need attorney permission, but your attorney needs to know. They handle the repayment at settlement and they should not be surprised by it.
AARC always notifies your attorney as part of the funding process.
Question five — do you understand the agreement?
Read every page. Ask questions about anything unclear. A reputable funder will walk through the agreement with you line by line.
If a funder rushes you through the agreement or pressures you to sign quickly, that is a serious red flag.
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
- Will taking an advance reduce my settlement?
- The advance plus its flat fee is repaid out of the settlement, so your net proceeds are reduced by that amount. It does not affect the gross value your attorney negotiates.
- 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.
