How Many Pre Settlement Loans Can I Get?

With a pre-settlement loan, you can get immediate access to cash while waiting for your settlement to arrive. If you’re struggling with medical bills, household expenses, and lost income, this can be a major blessing. But what happens if you run out of the settlement advance money while your case is still pending?

Is it possible to get more than one pre-settlement loan on the same case?

How Pre-Settlement Loans Work

Before we start talking about secondary or tertiary settlement advances, we need to establish how your primary settlement advance is going to work.

As the plaintiff in a lawsuit, you’ll be in line to receive a settlement, through negotiation or (less commonly) through trial. This settlement should provide you with enough money to cover your medical expenses, any wages you lost from your injury, and your pain and suffering as well.

However, it could be months, or even years, before you get your hands on this money.

With a pre-settlement advance, you can get immediate access to a portion of the settlement money you’re projected to receive. With this chunk of money, you can start paying off your medical bills, cover your daily expenses, or do just about anything else you want. Then, when the settlement hits your bank account, you’ll pay the loan back plus accrued interest or possibly just a fixed fee. If you don’t receive a settlement, you won’t owe anything (typically).

Of course, it could be months between the time you get the settlement advance and the time your settlement arrives. In that time, you could exhaust the funding you received.

Can you go back to your loan provider and get an additional advance?

The Short Answer: Are Two Settlement Advances Possible?

The short answer is yes, in many cases, it’s possible to get two, or even three settlement advances or even more settlement advances. However, this isn’t a guarantee, and there are some important caveats to keep in mind.

As a general rule, you can continue taking out additional settlement advances with the same provider, so long as you don’t exceed the maximum allowable loan amount from that provider. Once you hit that limit, you won’t be able to take additional loans.

You may also be able to get a secondary settlement advance from a different settlement advance provider; however, there are additional factors you’ll need to consider when doing this. Most settlement advances come with specific restrictions that prohibit you from taking out loans with multiple lenders. This is to prevent the possibility of the plaintiff being overfunded, which could make it hard for the lender to make the money back.

To get around this, you can have an additional lending provider buy out the original loan, lending you more money in the process. This is something you’ll have to negotiate with a settlement advance provider – and not all providers will be willing to do it.

The Maximum Loan Amount

The most important variable to consider, and the biggest obstacle in the way of getting a second settlement advance, is the maximum loan amount. Most settlement advance providers will set a maximum amount they’re willing to lend to you, based on your case.

Typically, this is a percentage of the settlement amount you’re likely to receive. For example, if you’re in a position to win a $100,000 settlement, you might qualify for a maximum loan amount of $20,000.

You don’t have to take the full amount. You could choose to take only $10,000 – meaning you still have $10,000 of loans you could hypothetically take from this case.

If you’ve already hit the maximum loan amount, it’s unlikely you’ll be able to take out a second settlement advance – especially if you’re working with the same provider as before. The only real exception here is if something significant changes about your case, setting you up for a bigger settlement.

If you haven’t hit the maximum loan amount, you can continue taking settlement advances until you do (again, in most cases).

Alternative Options If You Run Out of Money

While it’s technically possible for you to get multiple settlement advances, you shouldn’t rely on this as your only financial support system. There’s a chance you could hit the maximum loan amount and run out of money – and there’s a chance all your settlement advances will still leave you with bills to pay and other sources of financial strain.

If you run out of money before your settlement arrives and getting an additional settlement advance isn’t an option, there are a few other strategies you can use to get to the finish line.

For example:

  • Cut your expenses. It’s tempting to continue living the lifestyle to which you’ve grown accustomed, but if you want to make ends meet for as long as possible, you may have to make some cuts. That could mean something simple, like reducing your entertainment expenses, or something more drastic, like moving to a smaller house.
  • Use a loan or credit card. Loans and credit card purchases aren’t ideal, because they typically come with high interest rates that compound over time, putting you in an even worse financial situation than you were in before. However, if you’re in a tough situation and you’re out of options, or if you only need to last a few more weeks, it could work in your favor.
  • Find an alternative source of income. You can also look for alternative sources of income. If you’re unable to work in your primary career, you could pick up a side gig as a digital freelancer, helping others with writing, graphic design, or even life coaching. If you don’t have the skills or inclination to pursue this, you could also consider selling some of your possessions to raise funds.

Are you interested in getting more time to negotiate your settlement? Do you need a sense of financial security while you’re waiting for your case to resolve? A pre-settlement advance could be the perfect solution. Apply for a pre settlement loan with Capital Now Funding today – and start reducing your financial stress!