Funding as a Tactical Tool in Active Cases

Every plaintiff attorney has faced it: a client under financial stress pushing to settle early. Medical bills pile up, wages are lost, and day-to-day expenses become overwhelming. Even strong cases can lose value when clients can’t afford to wait.

Traditionally, pre-settlement funding has been seen as a necessary evil—something that complicates cases, adds frustration, and damages trust between client and attorney. But when managed properly, funding can actually preserve case value, strengthen the attorney–client relationship, and improve law firm revenue.

The Pressure Before Funding

Clients in financial distress are more likely to pressure their attorney to resolve cases quickly. For attorneys, this creates tension: settle early to give the client immediate relief, or hold firm for the case’s true value and risk losing client trust.

Without a solution, attorneys may find themselves in an impossible bind—either sacrificing case value or straining the attorney–client relationship. This is where responsible funding comes in: by relieving immediate financial stress, clients can stay patient, focus on recovery, and trust their attorney’s strategy.

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The Settlement Decision

When clients reach the negotiation stage, funding plays a pivotal role. A client who is financially secure is far less likely to accept a lowball offer. That patience allows attorneys to negotiate from a position of strength, often leading to significantly higher settlements.

Higher settlements don’t just benefit clients—they also benefit firms. By preserving case value, attorneys increase their own fee recoveries, boosting firm revenue without taking on additional cases. In other words, a well-funded client is not only a happier client but also a more profitable one.

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The Domino Effect of Poor Funding

The opposite scenario is all too common: clients stuck in high-rate agreements feel crushed by growing repayment balances. They become frustrated, distrustful, and eager to settle just to stop the financial bleeding. That resentment can spill over onto the attorney, damaging the relationship and sometimes forcing firms to cut their own fees just to resolve the case.

Poorly managed funding doesn’t just hurt clients—it stunts the potential of the entire case.

Building Trust Through Transparency

When attorneys address funding proactively—discussing options openly and helping clients understand costs—they reinforce their role as trusted advisors. This transparency strengthens the relationship at every stage:

• Before funding: clients feel supported, not abandoned.
• During the case: clients stay focused on treatment and recovery, not bills.
• At settlement: clients are less pressured, leading to better results and more revenue for both sides.

The Bigger Picture

For too long, funding has been a blind spot in litigation strategy. But used correctly, it is more than just a financial bridge. It is a strategic tool that protects case value, deepens attorney–client trust, and ultimately increases law firm margins.

Firms that continue to ignore or distance themselves from funding risk stalled cases, frustrated clients, and unnecessary revenue loss. Those that engage with it thoughtfully, however, unlock the full potential of their cases—and their practices.

How ClaimAngel Enables This

ClaimAngel was built to make this strategic approach possible. By offering the industry’s lowest standardized rate (27.8% simple annual, capped at 2x over 46 months) through a marketplace of 25+ vetted funders, ClaimAngel removes the risk of predatory terms and eliminates administrative headaches with a centralized tech platform.

Attorneys can confidently provide funding options that protect clients, strengthen relationships, and preserve case value—while improving firm revenue.

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