How pre and post-settlement financing works

Pre-settlement finance

When it comes to Legal Finance, plaintiffs may use legal funding to pay for a variety of expenses including lawsuit-related expenses and for general liquidity and personal needs. 

This is an advance given to plaintiffs at any time before final adjudication of their case or the parties have entered into a settlement agreement.

Post-settlement financing

This occurs after a legal case has been won or settled, while the plaintiff or the law firm (e.g., if it was a contingency fee arrangement) is awaiting receipt of payment.

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Yieldstreet evaluates all PFC portfolios before deciding to participate in a curated, vetted, diversified portfolio of advances. Pre- and post-settlement portfolios will typically include several cases. 

Yieldstreet investors generally receive interest payments and a return of their principal in line with the targeted returns and projections described in the offering materials for the particular opportunity.

With pre-settlement financing, the liens are exercised as cases are settled or won, and investors are repaid their principal and interest in multiple event-based payments.

With post-settlement financing, the lien is placed on the funds awarded, and investors are paid principal and interest when the funds are transferred into a bank-controlled escrow account (usually this means a one-time payment to investors). 

For additional questions regarding Yieldstreet or our legal finance offerings, please email us at [email protected]

For accredited investors only. Past performance is no guarantee of future results. Any historical returns, expected or target returns or probability projections may not reflect actual future performance. All securities involve risk and may result in significant losses.

This communication and the information contained in this article are provided for general informational purposes only and should neither be construed nor intended to be a recommendation to purchase, sell or hold any security or otherwise to be investment, tax, financial, accounting, legal, regulatory or compliance advice. Any link to a third-party website (or article contained therein) is not an endorsement, authorization or representation of our affiliation with that third party (or article). We do not exercise control over third-party websites, and we are not responsible or liable for the accuracy, legality, appropriateness, or any other aspect of such website (or article contained therein).

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