Usually not, at least not as two separate advances sitting side by side in the same case. What normally happens instead is a buyout, where a new company pays off the first one and writes you a single larger advance.
That distinction matters more than it sounds, because it changes what you should be asking for when you call a second company.
If your question is whether you can get more money at all, the answer is often yes, and our guide to getting pre-settlement funding more than once covers the general version of that question.
In this article, we walk through the three paths open to someone who already has an advance, why nearly every funder insists on being first in line, how a buyout actually works with real numbers, and what you have to tell the new company before you sign anything.
The Short Answer
Most funders will not take second position behind another funding company in the same case. The common route is a buyout: the new company pays off your current balance directly and replaces the old agreement with one larger advance. You end up with one company and one payoff, not two.
Key Takeaways
- Most funders prefer or require first position on the case.
- A buyout is the normal path to more money from a different company.
- Your existing contract has to be disclosed on the new application.
- Your existing payoff may continue to grow, depending on the fee structure and agreement.
- Your attorney typically helps coordinate the payoff and documentation for the new funding agreement.
Three Ways to Get More Money on the Same Case
There are only three arrangements a plaintiff in your position can realistically end up with, and they differ in how often they happen, what they cost, and how long they take to close.
| Arrangement | How common | Cost consideration | Process |
|---|---|---|---|
| Additional advance from current funder | Most common | Additional fees depend on the existing/new agreement | Usually simpler because the existing funding stays in place |
| Buyout by a new funder | Common | Existing payoff becomes part of the new funding amount | Requires payoff information and new underwriting |
| Two separate funders on one case | Rare | Terms may reflect the additional repayment risk | More complicated because both obligations remain against the same recovery |
For many plaintiffs, asking the current company about additional funding is the simplest place to start because the existing agreement does not have to be bought out and replaced.
Why Do Funders Want First Position?
Funders want first position because whoever is first gets paid first out of your settlement, and whoever is second only gets paid if there is anything left.
Funders generally want priority over any later funding obligations because repayment comes from the same potential case recovery. If another company is already entitled to repayment from the proceeds, a second funder takes on additional risk if the eventual recovery is lower than expected.
Now put that next to how a personal injury case actually resolves. Cases can settle for less than their projected value, and other obligations against the recovery may also reduce the amount available for repayment.
A company in second position takes on additional repayment risk. Pricing that risk fairly can be difficult, so many companies decline second-position funding altogether.
The buyout exists to solve that problem. Instead of stacking a second lien behind the first, the new company clears the first one and takes its place.
How Does a Lawsuit Loan Buyout Work?
A lawsuit loan buyout runs in four steps, and the money never passes through your hands until the last one.
- You request a written payoff figure from your current funder, with a date it is good through.
- You apply with the new company and give them that payoff letter.
- If approved, the new company pays your current funder directly.
- You receive the difference between the new advance and the payoff.
Here is what that looks like with numbers. The figures below are an illustration chosen to show the arithmetic, not a quote or a prediction for your case.
Say you took $8,000 fourteen months ago and the payoff today is $13,200. A new company approves you for $25,000. They send $13,200 to the old funder, and $11,800 lands in your account.
Your total obligation is now $25,000 plus whatever fee accrues on it from here, and there is one funding obligation against the case instead of two.
What a Buyout Costs You
The part most people miss is that the accrued fee on your first advance becomes part of the new funded amount. In the example above, $5,200 of fee became principal that now accrues its own fee.
That is why a lower advertised rate does not automatically mean a lower total. A smaller percentage applied to a larger starting number can land higher than where you were.
Ask both companies for a written payoff at the same realistic settlement date, then compare those two figures against each other. Our article on why lawsuit funding payback grows over a long case walks through how that arithmetic builds over time.
Comparing the advertised rates alone will mislead you almost every time.
When Is a Second Funder Worth It?
A buyout may be worth considering in several situations. The first is when your original advance was small, your case has since strengthened, and your current company will not go higher.
The second is when your first contract compounds with no cap on the total, which can matter a great deal on a case that runs for years.
The third is when your current funder has simply declined to advance more and given you no path forward.
It may be less worthwhile when you are moving solely for a slightly lower advertised rate, especially if your case is expected to settle relatively soon. Because the existing payoff becomes part of the amount the new funder must cover, compare the projected total payoff under both options before deciding.
Switching funding companies can make sense when it solves a meaningful problem rather than simply offering a slightly lower advertised rate.
What If You Have Two Separate Lawsuits?
Two advances against two different legal claims is a different situation entirely, and it is far more straightforward.
Each case gets evaluated on its own expected recovery, its own attorney, its own existing funding, and the funder’s own criteria. One approval does not depend on the other.
So a person can hold two lawsuit loans at the same time without either company sitting in second position, as long as each advance attaches to a different case.
What Do You Have to Disclose?
Funding applications commonly ask whether you already have an advance against the case. If they do, answer accurately and provide any requested payoff information. The new company needs to know what obligations already exist against the potential recovery before deciding whether additional funding makes sense.
Providing inaccurate information could affect your funding agreement or approval, depending on the contract’s terms. Disclosing the existing advance upfront also allows the new funder to calculate the correct payoff and evaluate how much additional funding the case may support.
Our guide to what non-recourse actually means explains how non-recourse funding works and what borrowers should understand before accepting an advance.
Who Gets Paid First at Settlement?
Your settlement is disbursed in a set order, and both funders would sit in that order if you somehow ended up with two.
- Attorney fee
- Case costs
- Medical liens
- First funder payoff
- Second funder payoff
- Net to you
The exact sequence can shift depending on your agreements, the type of lien, and your state’s law, so treat that list as the general shape rather than a rule.
Medical liens can also reduce the amount you ultimately receive from a settlement. Our article on how medical liens affect your settlement explains which ones can be negotiated down.
How to Shop a Second Offer Without Wasting Time
Four steps will save you most of the back and forth.
- Get a written payoff figure from your current funder with a good-through date on it.
- Tell your attorney before you sign anything, since their office handles the payoff and the new lien.
- Ask each new company directly whether they buy out or take a second position.
- Compare total payoff at the same assumed settlement date, not advertised rates.
The third question sorts the field quickly. If a company says it will take second position, ask exactly how that arrangement works, who receives repayment first, and how the added risk affects the agreement.
Our list of 12 questions to ask before choosing a legal funding company covers what a fair offer sounds like on the phone.
How DMS Funding Handles an Existing Advance
DMS Funding reviews buyout requests and will pay an existing funder directly when the case supports the combined amount. We need your current payoff letter, your attorney’s contact information, and the same case documents any application requires.
Approval usually comes within 24 to 48 hours; there is no credit check, and you can start an application here.
Frequently Asked Questions
Can I have two lawsuit loans at once?
In two different cases, often yes. In one case, two separate companies at the same time is unusual, because the second one would be paid only after the first. Getting more money on a single case normally happens through an additional advance from your current funder or a buyout.
What is a lawsuit loan buyout?
A buyout is when a new funding company pays off what you owe your current funder and replaces that agreement with a new one. You are left with a single company and a single payoff at settlement.
Who gets paid first if I have two lawsuit loans?
Repayment order depends on the agreements you signed, any other claims against the settlement, and the law in your state. As a general matter, the earlier lien is paid before the later one, but your attorney is the person who can tell you how it applies to your case.
Do I have to tell the new company about the old one?
Yes. Applications ask about existing funding, and you should answer accurately and provide the payoff figure. The new company needs it to size the offer, and an inaccurate answer can affect the protections in your agreement.
Can I switch if my current rate is too high?
Sometimes, through a buyout, subject to underwriting and the size of your current payoff. Compare the projected total you would owe at a realistic settlement date under each agreement rather than deciding on the advertised rate alone.
Ask DMS Funding About a Buyout
If you already have an advance and need more, the fastest way to find out where you stand is to request a payoff letter and send it over with an application.
DMS Funding runs no credit check, and you owe nothing if your case does not result in a recovery. See what your case can support, or read the general version of this question in our guide to getting funding more than once.
