The same-day car accident lawsuit loan is a cash advance that allows you to cover your living expenses while you wait for a lawsuit settlement. Although you can use the funds for any reason, people typically use pre-settlement funding to provide for their basic needs until their case settles.

The term “low cost car accident loans” is somewhat misleading because this type of funding is not technically a loan. If you lose your case and do not receive compensation, you do not have to repay the company that lent you the money.

Because there’s no guarantee a funder will recoup its money, companies are more likely to offer a cash advance when a case has a high chance of success. Regulations that apply to standard loans may not apply to pre-settlement funding.

Applying for funding from a pre-settlement funding company can help with immediate costs, but be aware that fees and interest rates can be high. As such, pre-settlement loans are primarily used when other alternatives aren’t available.