Education
When NOT to Take a Pre-Settlement Loan
• 2 min read
Funding helps a lot of claimants, but it isn't always the right answer. Here's when to skip it.
Skip funding when you have no-cost options that work. If your landlord will accept a hardship arrangement, your providers will accept letters of protection, and your immediate needs are manageable — wait.
Skip funding when your case is borderline. If liability is genuinely uncertain or coverage is minimal, taking funding against an unlikely recovery just adds risk and complexity.
Skip funding when you can wait. If the case is likely to settle in a few weeks and you can manage that long, the cost of funding isn't worth it.
Take funding when there's a real, time-sensitive financial need and the case can comfortably support the advance. That's the sweet spot.
AARC tells claimants directly when funding isn't the right tool. We'd rather decline and protect you than fund into a bad outcome.
Call (800) 297-3834 for an honest assessment.
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.
