Guide
Plaintiffs navigating a lawsuit often hear different financial terms thrown around—pre-settlement funding, lawsuit loans, case expense loans, or litigation financing. While these options may sound similar, they serve very different purposes and apply to different parties.
Understanding the distinction between pre-settlement funding and case expenses loans is essential to making informed financial decisions during litigation. This article explains how each works, who they’re designed for, and why the difference matters.
What Is Pre-Settlement Funding?
Pre-settlement funding is designed specifically for plaintiffs. It provides a non-recourse cash advance based on the expected outcome of a lawsuit.
Key features include:
Funds are advanced directly to the plaintiff
Repayment occurs only if the case wins or settles
If the case is unsuccessful, nothing is owed
No monthly payments
No credit checks or employment requirements
Pre-settlement funding exists to help plaintiffs cover personal living expenses while their case is pending.
What Is a Case Expenses Loan?
Case expenses loans—also called litigation expense financing—are designed for attorneys or law firms, not plaintiffs.
These loans are used to cover costs such as:
Expert witness fees
Medical record retrieval
Court filing fees
Depositions
Accident reconstruction
Trial preparation costs
Key differences include:
The loan is typically issued to the law firm
Repayment is expected regardless of case outcome
These loans may involve interest and structured repayment terms
Plaintiffs are not the direct borrower
Case expense loans help attorneys manage litigation costs—but they do not provide personal financial relief to plaintiffs.
The Key Differences at a Glance
Feature | Pre-Settlement Funding | Case Expenses Loan |
|---|---|---|
Who receives funds | Plaintiff | Law firm |
Purpose | Living expenses | Litigation costs |
Repayment required if case loses | No | Often yes |
Credit check | No | Sometimes |
Monthly payments | No | Possible |
Risk to plaintiff | None | Indirect (fees deducted later) |
Non-recourse | Yes | Usually no |
Why Plaintiffs Should Understand the Difference
Confusion between these options can lead to misunderstandings about:
Who owes repayment
How much risk is involved
What the money can be used for
How settlement proceeds are distributed
Pre-settlement funding is meant to protect plaintiffs from debt, while case expense loans are tools attorneys use to manage operational costs.
Knowing the difference helps plaintiffs avoid unnecessary anxiety and ensures realistic expectations throughout the case.
Can Both Be Used in the Same Case?
Yes. In some cases:
An attorney may use a case expense loan to fund expert witnesses
A plaintiff may receive pre-settlement funding to cover living expenses
These two tools operate independently and serve different purposes. When used responsibly, both can support a strong legal strategy—without interfering with one another.
Why Pre-Settlement Funding Is Often the Safer Option for Plaintiffs
For plaintiffs facing financial hardship, pre-settlement funding offers several important protections:
No risk if the case is unsuccessful
No monthly payments while injured or unable to work
No impact on credit
No obligation beyond the settlement itself
This makes pre-settlement funding a safer alternative to credit cards, personal loans, or borrowing from friends and family.
Why Plaintiffs Trust Instabridge
Instabridge focuses exclusively on plaintiff-first, non-recourse funding. We offer:
Fast approvals—often within 24–48 hours
Flat-rate, transparent pricing
No compounding interest
No credit checks
Attorney coordination
Responsible funding amounts to protect final settlements
We help plaintiffs understand exactly what they’re agreeing to—no confusion, no pressure.
Conclusion: Two Tools, Very Different Purposes
Pre-settlement funding and case expense loans are both used in litigation—but they serve completely different roles. One supports plaintiffs’ lives; the other supports attorneys’ cases.
If you’re a plaintiff struggling financially while your lawsuit is pending, pre-settlement funding from Instabridge may provide the relief you need—without risk or debt.
If you’re unsure which option applies to your situation, contact Instabridge today. We’ll explain your options clearly and help you move forward with confidence.
