what is pre settlement loans

Pre-Settlement Loans in California: 4 Tips to Help You Choose the Right Service

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The statute of limitations for personal injury claims in California is two years from the accident date. So if you file a lawsuit, it’s essential to act quickly- especially if you’re facing expensive medical bills and lost wages.

One option for funding your lawsuit is a pre-settlement loan. A pre-settlement loan is a type of lawsuit funding that allows plaintiffs to borrow money before their case settles. The types of pre-settlement loans are litigation funding, lawsuit funding, and settlement funding.

It can be an excellent option for plaintiffs who need more money to pay bills or other costs while waiting for their case to settle. However, not all pre-settlement loan companies are created equal. This post will discuss four tips for choosing a suitable service provider for pre-settlement loans in California.

  1. Do Your Research

In California, damage caps on noneconomic damages exist for specific cases. For instance, medical malpractice has a noneconomic damage cap of $250,000. Hence, you must research the state laws regarding your case to avoid any financial surprises later on.

A reputed legal funding company will always be upfront about the fees and interest rates. Furthermore, they will also educate you on the laws regarding your case.

Hence, research is crucial when choosing a litigation loan service in California.

Some benefits of approaching an experienced company include:

First, you will be aware of the legal aspects of your case.

The company will be up to date on the ever-changing California state laws.

They will also have a network of attorneys who can help you with your case.

  1. Compare Rates

It is crucial to compare the rates of different services before you decide on one. You don’t want to be surprised by hidden fees or a higher interest rate than anticipated.

Don’t go with the first service you come across. Instead, do your research and compare rates from different companies to ensure you’re getting the best deal possible.

Some hidden charges may include an origination fee, a processing fee, or even a “draw fee.” Ensure to ask about this upfront so there is no confusion later on.

  1. Ask for Referrals

It is essential to ask for recommendations when looking for the best pre-settlement loan service in California. Talk to all the family and friends and see if they can refer you to a good company. You can also check online forums and see what other people say about different services.

Also, check for what kind of cases the company usually funds. Some cases which are eligible for funding are:

-Auto accident cases

-Slip and fall cases

-Defective product cases

-Medical malpractice cases

-Workers’ compensation cases

  1. Read the Contract Carefully

The contract for pre-settlement loans in California will include details like:

  • The amount of money you’re borrowing
  • The fees associated with the loan
  • The interest rate
  • When you will need to repay the loan

You must read and understand the entire contract before signing it. You should also ensure that you are comfortable with all terms and conditions. If you have questions, be sure to ask about them.


Pre-settlement loans can be an easy way to get the money you need during your case. However, it is essential to choose exemplary service. There are many factors to consider, such as the fees, interest rates, and repayment options, when choosing a litigation financing company. By following these tips mentioned-above, you can be sure that you select the best possible service for your needs.