Future Settlement funding is a litigation financing model. Basically, litigation financing companies risk and purchase a possible settlement on a lawsuit that they believe will definitely win in court. They provide the plaintiff with a cash advance that is smaller than the expected amount settled in court. Sometimes the turn around time is as fast as 3-4 days for the cash advance.
Plaintiffs can take advantage of this service for a number of different reasons. An example is if they cannot wait for the settled amount and need the money up front. Usually, they need it to pay the bills incurred during the litigation process or medical bills. Instead of taking out a loan with a higher interestt, they can opt to sell their future settlement and be able to use the cash up front.