- within Litigation and Mediation & Arbitration topic(s)
- in United States
Many injured plaintiffs face financial strain while waiting for their cases to settle — medical bills, rent, and lost income quickly add up. Legal funding, also known as pre-settlement funding, can provide immediate relief. However, myths and misconceptions often stop plaintiffs and even some attorneys from considering it.
At Express Legal Funding, we've spent over a decade helping personal injury and accident victims access fast, non-recourse (risk-free) cash advances while awaiting settlements. Here are five of the most common myths about legal funding — and the truth behind them.
Myth #1: "Legal Funding Is Just Another Loan"
Truth: Legal funding isn't a traditional loan. It's a non-recourse cash advance based on your case's expected value. You only repay if you win or settle. If you lose, you owe nothing — no credit checks, no monthly payments, and no personal liability.
Myth #2: "Legal Funding Isn't Legal or Regulated"
Truth: Legal funding is legal and regulated across most U.S. states. Several states — including Missouri, Ohio, Oklahoma, and now California — have established consumer protection frameworks to promote transparency and ethical standards. Reputable companies follow strict codes of conduct and are members of industry organizations such as ALFA, ARC, and LFAFF.
Myth #3: "You Need Good Credit or a Job to Qualify"
Truth: Eligibility is based on the strength of your case, not your financial profile. Legal funding companies work with your attorney, not your credit history. If your claim is valid and your lawyer works on contingency, you can qualify even if you're out of work or have poor credit.
Myth #4: "Legal Funding Companies Control Your Case"
Truth: Funding providers cannot and do not influence legal strategy. Your attorney remains in complete control of the case. The funding agreement ends once the advance is issued, allowing you to maintain independence and focus on recovery.
Myth #5: "Legal Funding Is Too Expensive"
Truth: Legal funding does carry costs, but transparent providers like Express Legal Funding cap rates and offer clear, upfront terms. Compared to payday loans or high-interest credit cards, it's significantly more affordable — and it gives plaintiffs the time and stability to pursue fair settlements instead of accepting lowball offers.
Conclusion
Legal funding is a safe, regulated, and risk-free way for injured plaintiffs to bridge the financial gap between their accident and their settlement. Dispelling these myths helps both plaintiffs and attorneys make informed financial decisions during the legal process.
To read the full article and explore all 10 myths, visit Express Legal Funding.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
