It is possible to get more than one pre-settlement cash advance from your lawsuit. This happens when circumstances arise and create situations where it is appropriate for a revised loan during the proceedings of a legal claim.

Once you win your case, the amount you were advanced, together with interest charges goes to the company. Unlike bank loans whereby once you take a loan you have to repay no matter what, for a pre-settlement loan, you don’t pay a dime when the case doesn’t go in your favor.

Even though personal injury claims may drag out for years and take many unexpected turns, a pre-settlement loan will help you and your family take care of your expenses with ease. You may be wondering what pre-settlement loans are, and how many you can take? In this article, we explain the basics of a pre-settlement loan as well as when and how many loans you can take before the court reaches a settlement agreement.

Understanding a Pre-settlement Loan

Pre-settlement loans are funds that plaintiffs use to get medical treatment, pay for property that’s damaged, afford to live, or any other expense that occurs after they have been injured in any kind of an accident that was someone else’s fault. These loans are also known as a lawsuit loans, lawsuit funding, or legal funding.

Even though the term “loan” is used when describing pre-settlement funding, it is not like a loan you take out from a financial institution with a promise to pay later or in a few years. Instead, in exchange for a financial advance, you sell a portion of the expected settlement you’ll receive to the pre-settlement company.

Pre-settlement cash funding products are given based on your expenses during proceedings and the estimated value of the settlement. How much a plaintiff receives is determined by the expected outcome of the claim.

Types of pre-settlement funding cases include but are not limited to:

  • Car accidents
  • Animal bites
  • Bicycle accidents
  • Defective medical devices
  • Construction site accidents
  • Workplace accidents
  • Motorcycle accidents
  • Medical malpractice
  • Train or railroad accidents
  • Birth injury
  • Pharmaceutical cases
  • Product liability
  • Negligence in nursing homes
  • Pedestrian accidents
  • Slips and falls, and many more.

Why do I need a second pre-settlement loan?

Two lawsuits are never the same and the time it takes for a trial to conclude varies. Therefore, it is not unusual for a plaintiff to request a second or multiple pre-settlement loans. Below are various circumstances that may require additional pre-settlement funding:

  • Higher than expected medical bills.
  • Your disability approval is yet to be approved.
  • Unexpected bills you can’t afford to pay.
  • You can’t work as much or have difficulty finding work.
  • You discover additional injuries related to your accident.

After an accident, it is difficult to estimate how much money you’ll need to cover all your bills. Things are bound to change and that’s why your attorney and the lending firm will work together and come up with a good estimate.

Can you get two pre-settlement loans?

Yes, you can! One accident or injury case is different from the other. You list down how much you need and the case is evaluated by the law firm you have hired to represent you. Typically, a legal funding company only provides about 10-20% of the expected settlement fund. This ensures that after the case is settled, you are left with the biggest share of the fund, even after your attorney’s legal fees and the funding company are paid. However, if the initial amount is not enough to cover all the expenses, you can request an additional pre-settlement loan.

This process is much easier as all you need to do is contact your case manager and you don’t start the process from scratch. The second assessment is normally free.

Important to know is that even though you took out the 10-20% of your pre-settlement fund before, you can still apply fora second pre-settlement fund.

How many pre-settlement loans can I get?

legal papers

There’s no set limit to the number of pre-settlement loans you can get. It is understandable and normal for plaintiffs to take out a second loan or many pre-settlement loans on their case. This is because after an injury, it is difficult to determine just how much pre-settlement funding you and your family will need.

In various cases, most personal injury cases take much longer than anticipated to settle. In other cases, a person’s expenses may turn out to be much higher than expected. It could be day-to-day expenses, unexpected bills, or higher medical bills. Regardless of what the situation is, if you took out one pre-settlement loan and the funding isn’t enough, then you can request additional pre-settlement funding.


In many cases where an accident or injury occurs, a lawsuit may take months or even years for a settlement to be reached. Pre-settlement loans/funding exist so that plaintiffs may be able to support themselves and take care of their bills before the settlement check is out.

You can take one, two, or even multiple pre-settlement loans based on the estimated value of your settlement. With a pre-settlement funding, you can be sure that your life doesn’t come to a stand still just because you were in an accident. The process of obtaining a pre-settlement funding is not as complicated and it leaves you and your family financially stable during a difficult period in your life.

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