What Should I Do If My Pre-Settlement Funding Application Is Denied?

If your application is denied, the first step is understanding why. Your attorney is your best resource for determining the reason and whether reapplication is possible.

Pre-settlement funding denials typically fall into one of three categories: case-specific issues, documentation gaps, or state restrictions. Because pre-settlement funding is non-recourse, meaning the funder assumes all financial risk, companies conduct thorough due diligence before approving any application. This process requires active attorney involvement from the outset.

The most common reasons for denial include low projected case value (most funders advance 10–15% of expected net recovery, so cases with small projected settlements may fall below minimum thresholds), insufficient documentation (missing police reports, medical records, or clear evidence of liability), and comparative fault issues (if you bear partial responsibility, your net recovery is reduced proportionally, which can affect qualification).

If your application was denied due to documentation gaps, ask your attorney what additional records are needed and whether the file can be supplemented for reapplication. Some funders will reconsider a case if the evidentiary record improves — particularly if liability is strengthened by new witness statements, expert reports, or additional discovery.

If denial is based on state restrictions, your attorney can confirm whether any licensed funder operates in your jurisdiction. Criterica Capital operates across 39 states and DC. Contact us directly to confirm availability in your state before applying elsewhere.

Source: ALFA Consumer Litigation Funding Code of Conduct. See also: Criterica Capital States We Fund page for current jurisdiction coverage.

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