How Litigation Funding Works: A Complete Guide
Litigation funding gives injured people a cash advance against their pending lawsuit to help pay bills and cover expenses while their case is being resolved. The funding comes from a third party, not your lawyer and not a bank. You only pay it back if your case wins. If you lose, you owe nothing.
My name is Wm. Norris Jordan, and I own Go Philly Funding, based in downtown Philadelphia. Before I got into litigation funding, I spent 40 years in investment banking. In 2019, a lawyer friend asked me if I knew what litigation funding was. I did not. I studied it, talked to attorneys I trusted, and started funding cases with my own money. Within six months, I knew this was what I wanted to do for the rest of my career. I shut down my investment firm and opened Jordan Litigation Funding. Go Philly Funding is the Philadelphia-focused arm of that company.
This guide walks you through exactly how the process works, from application to funding to repayment. No jargon. No fine print buried in paragraphs. Just a clear explanation of what happens at every step.
In this guide:
- What is litigation funding?
- The three-step process
- What happens during the case review?
- How repayment works
- What non-recourse means in practice
- Your attorney's role
- What funding can be used for
- How it compares to other options
- Frequently asked questions
What Is Litigation Funding?
Litigation funding is a financial arrangement where a funding company provides cash to a plaintiff while their personal injury case is pending. The plaintiff uses those funds to help them get through the process of settling their case. When the case settles or wins at trial, the funding is repaid from the settlement proceeds. If the case loses, the plaintiff owes nothing.
The industry also uses the terms pre-settlement funding, pre-settlement advance, and lawsuit funding. These all describe the same service. At Go Philly Funding, we call it pre-settlement funding because that is the most accurate description of what it is: funding that comes before your settlement.
Litigation funding is not a loan. That distinction matters, and we explain why in detail below.
The Three-Step Process
At Go Philly Funding, we keep the process simple. Three steps. No surprises.
Step 1: You apply.
Visit gophillyfunding.com and fill out the application. It takes only a few minutes. You will provide basic information about yourself and your case, including your attorney's name and contact information. There are no fees to apply. No credit check. No upfront costs of any kind.
Step 2: We review your case with your attorney.
After you submit your application, we contact your attorney directly. This is a professional conversation. We ask your lawyer about the details of your case: what happened, who is liable, what the expected value of the case might be, and where things stand in the legal process.
Your attorney does not work for us and we do not work for your attorney. We are a separate party coordinating information so we can make a fair funding decision. Your lawyer stays fully in charge of your case.
Step 3: You receive your funds.
If your case is approved, we can wire funds to you in as little as 24 hours. Wires are the easiest way to expedite your funds. If needed, we can also FedEx a cashier's check.
That is the entire process. Apply. We review. You get funded.
What Happens During the Case Review?
The case review is the most important part of the process, and it is also the part most people have questions about. Here is what we look at:
Liability. Who caused the accident? Is there clear evidence that someone else was at fault? Cases with strong liability are more likely to be approved.
Damages. How seriously were you injured? What medical treatment have you received? The severity of your injuries and the documentation of your damages factor into the review.
Case status. Where is your case in the legal process? Has a lawsuit been filed? Are you in discovery? Is there a trial date set? We fund all types of cases. Generally, the further along a case is, the easier it is to provide funding.
Insurance coverage. Is there sufficient insurance coverage or assets on the other side to pay a settlement or verdict?
Prior funding. Have you received pre-settlement funding from another company? This is one of the first questions we ask every new client. It tells us a lot about your situation and helps us understand what you currently owe.
We are not making a legal judgment about your case. We are evaluating the financial risk of providing an advance. The stronger your case, the more confident we are in funding it.
How Repayment Works
Repayment is simple, and we make sure every client understands it clearly before they accept funding.
When your case settles or wins at trial, the funding amount plus the agreed-upon interest is repaid directly from your settlement proceeds. Your attorney handles the disbursement. The repayment comes before you receive your portion of the settlement, just as your attorney's fee and any medical liens.
Here is what you will know before you sign anything:
- Exactly how much you are receiving in advance
- Exactly what the interest structure is and how it works over time
- Exactly what you will owe throughout the life of your contract
In every contract, you will see a schedule that we call the SOAP — Schedule of Agreed Upon Price. The SOAP clearly states the amounts owed and the timelines. While you can always contact us requesting a payment amount, your contract spells it out so there are never any surprises.
Go Philly Funding communicates clearly what is owed and when. We overcommunicate on purpose — we want you to always know where you stand throughout the life of your contract. At any time, we are happy to pick up the phone or answer an email about what is owed.
What Non-Recourse Means in Practice
Non-recourse is the term that describes the most protective feature of pre-settlement funding. In plain language, it means: if you do not win your case, you do not owe the money back.
Here is a real-world scenario as an example. Imagine you are a passenger in an Uber in Philadelphia. Someone rear-ends your Uber and you are seriously injured. You apply to Go Philly Funding, are approved, and receive $5,000.
If your case settles for $50,000, the funding amount plus interest is repaid from that settlement.
If your case somehow loses and there is no recovery, you owe nothing. You have no personal obligation to repay Go Philly Funding from your own assets or income if you lose your case. Go Philly Funding absorbs the funds that were previously advanced.
This is fundamentally different from a loan. With a bank loan, payday loan, or credit card advance, you owe the money regardless of what happens to your case. With non-recourse pre-settlement funding, the risk is on Go Philly Funding, not on you.
Your Attorney's Role in the Funding Process
Your attorney is involved, but they are not the ones making the funding decision. Here is what your attorney does:
What your attorney does:
- Provides information about your case when we reach out
- Reviews the funding agreement to confirm it is appropriate for your situation
- Acknowledges the lien so that repayment is handled properly at settlement
- Informs Go Philly Funding of any prior fundings
What your attorney does NOT do:
- They do not provide any of the funding
- They make no guarantees about the funding
- Their involvement in the funding process is entirely separate from how they handle your case
Many personal injury attorneys across Philadelphia and the surrounding counties are familiar with litigation funding. Some recommend it to clients who are struggling financially because it allows those clients to hold out for a fair settlement instead of being forced to accept a lowball offer from the insurance company.
If your attorney has never worked with a pre-settlement funding company before, we are happy to explain the process. We have strong professional relationships with law firms across the Philadelphia region and treat every interaction with respect.
What Can You Use the Funding For?
There are no restrictions on how you use your pre-settlement advance. Most clients use it for everyday essentials that have become impossible to cover since their accident disrupted their income:
- Rent or mortgage payments to avoid eviction or foreclosure
- Utility bills to keep the lights on, water running, and heat going
- Car payments to avoid repossession (especially critical if you need transportation for medical appointments)
- Groceries and household expenses for you and your family
- Medical expenses including co-pays, prescriptions, and transportation to appointments
- Other bills that do not stop just because your paycheck did
The point is to keep your life stable while your case moves forward. That is what these funds are for.
How Litigation Funding Compares to Other Financial Options
When you are in financial crisis because of an injury, you may be weighing several options. Here is how pre-settlement funding stacks up:
Compared to credit cards and personal loans: Those require repayment regardless of your case outcome. They require credit checks. They can damage your credit further if you fall behind. Pre-settlement funding has no credit check and no repayment if your case loses.
Compared to payday loans: Payday loans charge high interest, have short repayment windows, and create debt cycles. They must be repaid no matter what. Pre-settlement funding has no fixed repayment date (it is tied to your case timeline) and no repayment if you lose.
Compared to borrowing from family: Family loans strain relationships and come with emotional weight. Pre-settlement funding is a professional financial arrangement with clear, written terms.
Compared to doing nothing: Waiting it out is an option if you can survive financially. But if the wait forces you to accept a lowball settlement offer just to pay your bills, doing nothing can cost you far more than the cost of a pre-settlement advance.
Frequently Asked Questions
How long does the approval process take?
Once we receive the necessary information from you and your attorney, approval can happen in as little as a few hours. Funding is typically available within 24 hours of approval.
Is there a minimum or maximum funding amount?
There is no fixed minimum or maximum. The funding amount is based on the specifics of your case. We work with your attorney to determine an amount that makes sense for your situation.
The maximum amount is what Go Philly Funding perceives the value of the case is. We will advance up to 10% of the perceived value. As an example, if it's a $1,000,000 case, we have the ability to advance up to $100,000. Many times, in this scenario, we will advance $25,000 over a 4 to 6 month period.
We are a funding company. We have seen that if we do it incrementally, in the end, it benefits the client.
Can I get additional funding later if I need it?
Yes. If your case is pending and circumstances improve, you may be eligible for additional funding. We will always start that conversation by making sure you understand how much you currently owe, because many clients simply do not keep track.
Does my employer or the other side find out?
No. Pre-settlement funding is a private arrangement between you, the funding company, and your attorney. It is not disclosed to your employer, the defense, or the insurance company.
What if I already tried another funding company and was denied?
You can still apply with us. Every company evaluates cases differently. A denial from another company does not mean your case will be denied here.
The Bottom Line
Litigation funding exists because injured people may need financial help to survive. Their cases tend to take time. Insurance companies know this. And many times, they count on financial pressure to push you into accepting less than your case is worth.
Pre-settlement funding gives you the ability to wait. To pay your bills. To follow your medical plan. To let your attorney fight for what is fair, not what is fast.
If you are a personal injury plaintiff in Philadelphia or the surrounding counties and you are dealing with financial pressure while your case is pending, we want you to know this option exists. Apply for funding at gophillyfunding.com/apply. No credit checks. No upfront fees. Funds in as little as 24 hours.