Are There Caps on How Much Pre-Settlement Funding I Can Get?

There is no universal cap, but funding is limited to a percentage of expected net recovery. Most advances range from 10% to 20% of anticipated settlement value.

There is no federal or universal cap on pre-settlement funding amounts. Some states impose specific limitations through legislation, but most do not. In practice, the constraint is the economics of the case: funders will not advance more than the anticipated net recovery can support, because their repayment comes from that settlement.

The standard range is 10% to 20% of the expected net settlement value — after attorney fees, medical liens, and case expenses are accounted for. Net settlement is what remains after those obligations are satisfied. This means a $300,000 gross settlement with $100,000 in attorney fees and $50,000 in medical liens has a net value of approximately $150,000. A funder would typically advance between $15,000 and $30,000 in that scenario.

Key factors that affect the maximum fundable amount: (1) strength of liability evidence — clearer fault means higher confidence in recovery; (2) injury severity and documented damages — larger, documented losses support higher expected settlements; (3) insurance coverage of the defendant — underinsured defendants reduce the practical ceiling; (4) jurisdiction — some venues produce higher verdicts than others, which affects expected recovery modeling; and (5) stage of litigation — cases closer to settlement or trial often support higher advances.

If you believe your case warrants a larger advance than offered, discuss it with your attorney. Your attorney can provide additional documentation — expert opinions, additional discovery, medical records — that may support a higher advance. You can also apply to multiple funders simultaneously, though coordination with your attorney is recommended to avoid conflicting disclosure obligations.

Source: ALFA Consumer Litigation Funding Code of Conduct. State-specific caps (where applicable): check your state's litigation funding disclosure statute.

Need pre-settlement funding?