Historically, lawsuit settlement funding has gone unregulated. In some states, lawmakers are aiming to increase oversight and restrictions on the industry. But for now, many lawsuit funding companies can set rates as they see fit. Are you looking for an affordable lawsuit cash advance? We’ll look at how post-settlement funding rates may be calculated by your lender.

How Post-Settlement Funding Works

A post-settlement cash advance may cost less than a pre-settlement loan. The funding company is approving a plaintiff whose case has already been settled. Therefore, it’s taking on less risk. You’re going to receive the proceeds of the settlement; you just don’t know when. The non-recourse advance you were approved for will be paid out of this amount.

In other circumstances, the lender may issue a cash advance whether a case may win or lose. Since the company isn’t paid back if a case loses or the payout is less than you owe, it’s taking on substantial risk. High-interest rates and fees help recoup the losses from cases that don’t win. The company may also factor this into rates on post-settlement advances.

Factors Used to Calculate Post-Settlement Funding Rates

Post-settlement funding can help pay the rent or mortgage. It can also cover travel expenses, groceries, and legal fees. But with interest and fees added, the amount taken out of your settlement proceeds can be much more than you initially accepted. The funding company’s rates are determined using factors such as:

Whether the company specifies it charges recurring fees, ask for them to be waived. Also, ask about a cap on the repayment amount. Setting a maximum will be helpful if your case takes a long time to settle. For example, a 2.0x cap on repayment means you won’t pay back more than twice the amount you borrowed.

Tips on Shopping Around for the Best Post-Settlement Funding Rates

When comparing lawsuit funding companies, consider the following to find the most affordable options:

Apply for Post-Settlement Funding with Fund Capital America

If you’ve reached a settlement and are waiting to receive compensation, post-settlement funding can relieve the financial pressure. We provide non-recourse cash advances on auto accidents, personal injury, product liability, and other lawsuits with no hidden fees or upfront charges. Apply now by filling out our simple online form. If you have questions about legal funding or post-settlement funding rates, call (855) 870-2274 or contact us online now.