Guide
Pre-settlement funding can be a lifeline for plaintiffs struggling with medical bills, lost income, and daily expenses while waiting for a settlement. But not every application is approved. Funding companies must evaluate the strength and value of a case before providing a non-recourse advance, and certain issues can lead to delays or denials.
If you’ve been denied—or want to make sure your application is approved—understanding the most common reasons for denial can help you navigate the process smoothly.
Pre-Settlement Funding Is Based on Your Case, Not Your Credit
Before we dive into the reasons for denial, it’s important to understand one key point:
Approvals are based solely on your lawsuit—not your credit score, job history, or income.
This means:
No credit checks
No employment requirements
No personal financial qualifications
If your case is strong and has clear liability and damages, you are more likely to be approved.
Common Reasons a Pre-Settlement Funding Application Is Denied
1. The Case Lacks Clear Liability
Funding companies need to see that the defendant is likely to be held responsible. Applications may be denied if:
Liability is unclear or disputed
The police report or evidence is inconsistent
There are conflicting witness statements
The case relies heavily on speculation
Without clear liability, the chances of a successful settlement decrease.
2. Insufficient Case Value
Pre-settlement funding is repaid from the settlement, so there must be enough value in the case to cover:
Attorney fees
Medical liens
Case costs
The funding payoff
Your final settlement
If the case value is too small, the provider must deny the application to protect the plaintiff.
3. The Plaintiff Has Already Taken Too Much Funding
If you already received advances from multiple funding companies, this can complicate the case. A provider may deny additional funding if:
Existing liens exceed safe limits
The total funding amount risks consuming your future settlement
There is not enough projected value to support another advance
Funding companies must ensure you still walk away with meaningful compensation.
4. The Attorney Does Not Cooperate
Pre-settlement funding requires communication with your attorney to verify case details. Your application may be denied if:
The attorney refuses to respond
The firm does not work with funding companies
There are delays in sending required documentation
Without attorney cooperation, the provider cannot legally proceed.
5. Medical Treatment or Documentation Is Missing
For injury cases, funding companies rely on medical records to assess damages. Applications may be denied if:
You stopped treating prematurely
There are large gaps in treatment
No diagnostic imaging (MRI, CT) is available
Records are incomplete or inconsistent
Consistent medical care strengthens both your case and your funding eligibility.
6. The Case Is Too Early
Some plaintiffs apply before key documents are available. A provider may deny funding if:
The attorney hasn’t filed the claim yet
Liability documents aren’t ready
Medical records haven’t been collected
Insurance has not confirmed coverage
Once more documentation becomes available, you can reapply.
How to Improve Your Chances of Approval
1. Stay consistent with medical treatment
Follow your doctor’s recommendations and avoid long gaps.
2. Keep communication open with your attorney
Let them know you’re applying for funding so they can respond quickly.
3. Apply at the right time
Once liability is established and treatment is underway, approval is more likely.
4. Avoid taking multiple advances from different companies
This can complicate your case and reduce the amount you walk away with.
5. Work with a transparent, plaintiff-friendly funding company
Companies like Instabridge make the process easier and clearer.
Why Plaintiffs Trust Instabridge
Instabridge is committed to fair, responsible funding. We offer:
Fast approvals—usually within 24–48 hours
Flat-rate pricing, never compounding interest
Non-recourse funding—you repay only if you win
Clear communication with your attorney
Honest assessments to protect your long-term settlement
Even if we can’t approve a case immediately, we guide plaintiffs on what they can do to become eligible in the future.
Conclusion: Being Denied Funding Isn’t the End
If your pre-settlement funding application is denied, it doesn’t mean your case is weak—or that you won’t eventually receive support. Many denials are temporary and can be resolved with additional documentation, continued treatment, or clarification from your attorney.
If you want guidance on improving your eligibility or reapplying, contact Instabridge today. We’re here to help you secure the financial relief you need safely and responsibly.
