How Are Loans and Pre-Settlement Funding Different?

Credit Score

When someone applies for a loan, the bank looks at credit scores and payment history. If your credit score is 500 or below, the chance of getting a loan is pretty slim. The bank will also look at the amount of outstanding debt you have and household yearly income.

When you apply for pre-settlement funds at Barrister Capital, we don’t ask about your credit score or your yearly income. We do ask if you’re working with a lawyer, as well as some questions about your case. We also need to know if you’ve received money from another pre-settlement funding company.


Another difference between a loan and pre-settlement money is the time it takes to actually receive the money in your bank account. After approval for a loan through a bank, it usually takes five to seven business days. Saturday and Sunday aren’t business days, so if you get approved by a bank on Wednesday and it takes five business days to get the money, it will be the following Tuesday before you’ll have cash in your hand.  At Barrister Capital, we can approve you for pre-settlement funding in as little as 24 hours and we can wire the money to your account the same day.

Payback Schedule

When you get a traditional bank loan you start to pay it back in monthly installments within 30 days of approval. The bank expects you to make monthly payments for the term of the loan.If you miss a payment you’ll be charged a late fee. If you miss multiple payments, you’ll continue to rack up late fees and your credit score could plummet. Regardless of any life circumstances, you are required to pay back a bank loan in full. 

A pre-settlement advance isn’t a loan. When you are approved, the funds are considered a non-recourse purchase of the proceeds of a potential future case award or settlement. What does that mean? It means you don’t pay the advance back until your case is settled, and repayment is taken out of the money you are awarded. Non-recourse means if you lose your case and there is no settlement, you don’t have to pay back funds that were advanced to you. 

Pre-settlement funding from Barrister Capital allows you to use the money you receive to get back on your feet and isn’t paid back until your case is settled. 

Many times plaintiffs – that’s you – and attorneys are forced to settle before the true value of the case is reached simply due to financial pressures on the plaintiff.

Barrister Capital offers a simple application process for pre-settlement funding that will help you stay the course and receive the settlement you deserve.

Let’s get you back on your feet again. Apply for funding now.
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local phone number 502-897-5001