Basics
Pre-Settlement vs Post-Settlement Funding: What's the Difference?
• 2 min read
Both products help injury claimants, but they serve completely different situations. Here's when each makes sense.
Pre-settlement funding is provided before your case settles. It's non-recourse and depends on the strength of the case.
Post-settlement funding is provided after settlement but before the settlement check is actually disbursed — which can take 30 to 90 days for the funds to clear.
Post-settlement rates are typically much lower because the risk is lower: the case is resolved and the settlement amount is known.
Many claimants use pre-settlement funding during the case and a small post-settlement advance to cover the final waiting period before the check arrives.
Pre-settlement — for the long wait before resolution
Pre-settlement funding is for the months or years before your case resolves. It is non-recourse and repaid only if you recover.
Costs are higher than post-settlement funding because the risk is higher — the case is not yet won.
Post-settlement — for the wait after resolution
Once your case settles, there is still typically a 30- to 90-day wait while the carrier processes payment, the check clears your attorney's trust account, liens are satisfied, and your net is disbursed.
Post-settlement funding bridges that final wait. Because the settlement amount is known and the risk of non-payment is low, rates are much lower.
Some claimants use both
It is common to take pre-settlement funding to survive the case, then take a small post-settlement advance to bridge the final 30 to 90 days before the net check arrives.
The total cost of both, combined, is usually still much lower than going without funding and accepting a lowball settlement out of financial pressure.
Which one you need depends on timing
If your case is unresolved, you need pre-settlement funding. If you have a signed settlement agreement but the check has not arrived, you may qualify for post-settlement funding instead.
Call us and we will help you identify which product fits your situation.
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
- What happens if I lose my case?
- Nothing is owed. Because the funding is non-recourse, AARC absorbs the loss if your case does not result in a recovery.
- 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.
