You do not need to spend a year of your life waiting for insurance adjusters to return your attorney’s phone calls while the rent, groceries, medical bills, and daily expenses stack up. A delay does not mean your case is weak, either. Insurance companies often move slowly, and that is a major reason that lawsuit funding companies in New York exist.
In this guide, Apex Legal Funding LLC will explain pre-settlement funding and why it is a solution when insurance companies take their time.
Why Insurance Company Settlements May Be Delayed
New York gives the majority of injury victims three years from the date of their injury to file a lawsuit. From there, discovery, depositions, witness reports, and back-and-forth negotiations can add months to the timeline.
Your medical treatment shapes the calendar, too. Many attorneys wait until you reach a stable point in your recovery before they place a value on your claim, since the final settlement amount should account for future care. Unfortunately, every month you wait might shrink your savings further, which can make an early, low offer from an insurer look even more tempting.
How Pre-Settlement Funding in NYC Typically Works
Lawsuit funding is a cash advance against money that you may recover later. A funding company reviews the strength of your pending lawsuit with your attorney, and advances you a portion of what your case may be worth.
According to The Business Research Company’s pre-settlement lawsuit funding market report, the global total reached $19.62 billion in 2025 and was estimated to grow at a compound rate of 11.8%. Companies may advance somewhere in the range of 10% to 20% of your expected settlement amount, though every case differs.
According to the U.S. Government Accountability Office’s report on third-party litigation financing, consumer funders typically provide an individual plaintiff less than $10,000 to cover living expenses. Approval usually rests on liability and evidence rather than on your credit score or employment history, and plaintiffs do not have to repay nonrecourse funding if their lawsuit is not successful.
The majority of pre-settlement agreements are nonrecourse, though it is important to check these details before signing anything. If your case ends without a payout, you may owe nothing, because the company absorbs that risk. Read your contract closely, since terms vary from one company to the next and there may be applicable fees.
Funding companies in New York typically do not dictate how you spend the money. Once the funds arrive, you may put them toward expenses such as:
- Mortgage payments
- Utilities
- Insurance premiums
- Car payments
- Groceries
- Transportation to medical appointments
- Out-of-pocket costs for physical therapy
- Credit card balances
This kind of financial assistance may help you cover the basics so that your attorney can keep negotiating on your behalf and you do not feel pressured to cave in to low settlements. To qualify for pre-settlement funding, you typically need to have an active claim or pending lawsuit, an attorney representing you, and compensable damages from the at-fault party.
The company will also likely request records and an honest assessment of the case, which will require your attorney’s cooperation. Approval often takes a few days, and funds may reach your account within a business day or two after that.
What To Look for When Comparing Lawsuit Funding Companies in New York
New York permits legal funding. The New York City Bar has published ethics guidance addressing third-party litigation financing. Courts have treated these agreements as lawful when the funder discloses its terms and stays out of your legal strategy, so the industry has grown quickly.
According to a litigation funding investment market analysis reported by Yahoo Finance, North America accounted for 31% of litigation funding revenue in 2024, though steady growth in the Asia Pacific region may dilute this global share in the coming years. Still, not every company operates the same way.
A company that tells you to keep the arrangement from your attorney, or that hands you money before reviewing your case, may not have your interests in mind. Lawsuit funding is not free money, and understanding the costs is part of making a sound decision. A company may charge hidden fees that can build over time, so a case that drags on may cost you more than one that resolves quickly.
It is helpful to look for a trustworthy provider that explains its fees in writing and welcomes your attorney into the conversation. Ask what you would repay at six months, one year, and two years, and whether the company will reduce its share if your recovery comes in lower than expected. You can also speak with your attorney about the pros and cons of lawsuit advances before you commit.
Bridge the Gap With Apex Legal Funding LLC
Apex Legal Funding LLC works with injured plaintiffs and their attorneys throughout New York. Our team can walk you through the cases that qualify for legal funding and answer your questions. Call 1-800-377-4934 today to find out more about how our pre-settlement funding in New York works.
Frequently Asked Questions
Here are a few questions New York plaintiffs ask us often about pre-settlement arrangements.
Do You Need Good Credit To Qualify for Lawsuit Funding?
You generally do not need good credit to qualify for a pre-settlement advance. These companies tend to base approval on the strength of your case rather than on your financial history.
Will Applying for Funding Hurt Your Case?
Applying for funding should not hurt your case. Reputable pre-settlement funding companies stay out of the negotiations.
How Much of Your Settlement Can You Receive Upfront?
Typically, you can receive roughly 10% to 20% of your expected settlement amount upfront, though it depends on your case value and the company’s review process.
What Happens If You Lose Your Case After Receiving Funding?
If you lose your case after taking pre-settlement funding and it is a nonrecourse agreement, you generally owe nothing. The repayment comes only from a successful recovery.