The Difference Between Pre-Settlement vs Structured Settlement Funding
Legal cases often take months—or even years—to resolve, leaving many plaintiffs in financial limbo. That’s where lawsuit funding comes in. Two of the most common types are pre-settlement funding vs structured settlement funding. While they sound similar, they serve very different purposes. Understanding the distinction can help you choose the right option for your financial needs.
What Is Pre-Settlement Funding?
Pre-settlement funding, also known as a lawsuit cash advance or legal funding, provides plaintiffs with money before their case settles.
If you’ve been injured or are waiting on a personal injury, workers’ compensation, or other legal settlement, pre-settlement funding gives you access to fast cash based on your case’s estimated value.
The best part?
You only repay if you win or settle your case. There are no monthly payments and no credit checks—the funding is based solely on the merits of your case.
This type of funding helps plaintiffs:
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Pay for living expenses, rent, and medical bills
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Avoid pressure to settle too early
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Maintain financial stability during a long legal battle
With First Capital Legal Funding, plaintiffs can receive funds in as little as 24 hours after approval, making it a lifeline for those who can’t wait for justice to be served.
What Is Structured Settlement Funding?
Structured settlement funding applies after a case is settled. Instead of receiving your entire payout as a lump sum, structured settlements provide regular payments over time—often monthly or annually.
While this setup offers steady income, life sometimes demands immediate access to funds. Structured settlement funding allows you to sell part or all of your future payments in exchange for a lump sum of cash today.
This type of funding is ideal for individuals who:
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Need to pay off debt or medical bills
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Want to invest in a home or business
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Prefer full financial control instead of waiting years for small payments
First Capital specializes in helping clients convert their structured settlements into immediate cash, ensuring you get the money you deserve when you need it most.
Key Differences Between Pre-Settlement vs Structured Settlement Funding
| Feature | Pre-Settlement Funding | Structured Settlement Funding |
|---|---|---|
| When It’s Used | Before your case settles | After your case settles |
| Purpose | Provides cash while awaiting settlement | Converts future payments into a lump sum |
| Repayment | Only if you win or settle your case | No repayment — you’re selling your payment rights |
| Eligibility | Based on case value and attorney cooperation | Based on existing structured settlement |
| Access Time | Often within 24 hours of approval | Within days of agreement completion |
Why First Capital Is the #1 Source for Legal Funding Nationwide
At First Capital Legal Funding, we’ve built our reputation as the top-rated legal funding company in the USA by providing:
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Fast approvals and same-day funding in most cases
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Transparent, competitive rates with no hidden fees
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Expert funding specialists who understand your legal process
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Nationwide service — available in most states across the country
Whether you need pre-settlement funding to stay afloat during your case or structured settlement funding to unlock the value of your future payments, First Capital is your trusted partner for reliable financial support.
Get the Funding You Deserve
Waiting on a legal settlement shouldn’t mean financial hardship. Let First Capital Legal Funding help you access the cash you need — before or after your case settles.
Apply online today or call First Capital to learn how we can help you get funding fast.