Why Settlement Funding Loans Are Better Than Bank Loans

Why Settlement Funding Loans Are Better Than Bank Loans

There is a lot of unnecessary confusion surrounding settlement loans. For instance, some think settlement funding is the same as a personal or bank loan. In truth, these forms of funding could not be more different. We’re here to explain why settlement funding loans are better than bank loans and clarify who should seek settlement funding.

What Is a Settlement Loan?

Most Americans who have pending personal injury lawsuits need financial help to see the case through to the end. That’s how the legal system works in the United States: money is essential to access justice. However, the average American can’t afford to pay attorney’s fees and court costs on their own, not to mention medical bills that typically come with a personal injury case.

This leaves the average American with a difficult choice: do they forego their legal right to compensation because they can’t afford it? Luckily, settlement loans exist to make the situation more manageable. Pre-settlement funding is a service provided by funding firms like Apogee Capital Partners.

Pre-settlement funding is like an advance—the funding comes from your final settlement money. The only tricky thing about this cash is that you don’t have the settlement money yet. You’re still involved in the court case. A funder loans you the money, expecting you to repay them once you win your settlement.

You may wonder, “what happens if I don’t win my settlement?” We’ll talk more about that later, but don’t worry! You won’t have to repay if you don’t win your case.

What Is a Bank Loan?

Now that you understand how settlement loans work, how are bank loans different? A bank loan is a type of credit that works similarly to a credit card. Once a bank approves your loan, you get a sum of money that the bank expects you to repay. Depending on the loan, it may be a one-time loan or an open-ended line of credit.

Either way, you must repay the principal value (the amount your bank gives you initially), plus finance charges or interest. Generally, the longer it takes to repay the loan, the more interest you’ll pay over time.

Application Process

Aside from the differences in form, how do bank loans and settlement loans differ in function? The first significant difference you’ll encounter is in the application process. For settlement funding from Apogee Capital Bank, you can complete the application in a few minutes, and you’ll hear back from us regarding your loan in as little as 24 hours.

That quick service is not something you’ll see when you try to take a loan from a bank. Instead, you’ll need to provide copious amounts of financial information and take days of your time to finish the process. Once you jump through all the hoops, there’s no guarantee you’ll even get a loan. Banks usually give loans to people planning to open a business, not someone who needs help paying legal fees.

Recourse vs. Non-Recourse

This is the biggest differentiator between bank loans and settlement funding. As we mentioned earlier, you will not need to repay your loan if you don’t win your settlement. That’s because settlement loans are non-recourse. To make a long story short, if your case doesn’t end with you receiving compensation, you won’t need to pay back your settlement funder.

That’s great news for you because it means you won’t be in trouble if your case doesn’t go the way you want it to.

With a bank loan, on the other hand, you’re expected to repay it no matter what happens. We mentioned that bank loans often go toward starting a business. If that business fails, the bank doesn’t care. Even though you’re already in financial trouble, the bank will make the situation worse by demanding repayment.

In other words, bank loans are high-risk while settlement funding is low-risk.

Credit Requirements

Bank loans also have stricter credit requirements than settlement funding. If you don’t have a strong credit score, it’s unlikely that the bank will approve you for your loan. If you have a long history of on-time payments and minimal debt, you have a good chance of being approved.

However, many people who need loans in the first place don’t have a history of great credit. That’s where settlement funding comes in. We couldn’t care less about your credit score. The only thing that matters is whether you have a good case!


With settlement funding, all that’s needed for approval is a complete application and information from your attorney about your case. Once we’re confident that you have a great case, you’ll be approved. With a bank, your financial history will be investigated, your income studied, and your employment, assets, and debts analyzed.


Banks are hit or miss on the communication and customer service front. There are banks out there that take the time to make everything clear, but there are just as many that don’t have high levels of service. The team at Apogee Capital Partners doesn’t want any confusion about our loans, so we’re here to answer your questions anytime.

We’re confident we’ve made a simple, streamlined process, but feel free to give us suggestions on improving it!

Personal Requirements

The most common uses for bank loans are starting businesses, buying homes, or funding large purchases. When you need money to pay for medical bills, attorney’s fees, and groceries, a bank probably won’t give you the time of day. A settlement loan is your best option if you need money for personal reasons.

Terms and Conditions

Bank loans come with a wide range of terms and conditions—some are short and sweet, but many others come in a giant stack of papers you couldn’t read through if you tried. With personal injury funding, the terms and conditions are simple and easy to understand.

Now that you know why settlement funding loans are better than bank loans consider contacting Apogee Capital Partners today. We can help you get the settlement loan you need to keep your finances on track as you pursue justice.

Why Settlement Funding Loans Are Better Than Bank Loans

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