Lowest Cost Pre-Settlement Funding

We offer tips to help plaintiffs find pre-settlement funding with lower interest rates and better terms.

Lowest Cost Pre-Settlement Funding - There are many options for those looking for pre-settlement funding. This article gives more information on lawsuit loan rates and how to find a good rate for your case.
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Lowest Cost Pre-Settlement Funding

So many companies offer pre-settlement funding that finding the one with the best interest rates can be a challenge. On one end of the scale you have LawsuitLoans.io offering rates as low as 2.5% simple interest computed monthly while at the other end of the scale you can find settlement funding companies charging as much as 60%. Shopping and comparing rates and terms charged by several companies for settlement loans provides the best way to find the lowest cost option when you need a cash advance while waiting for a lawsuit settlement.

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When you need money for living expenses and other financial obligations, a cash advance from a pre-settlement funding company may be your best option. The money advance to you is based on the value of the expected settlement of a personal injury lawsuit that you have pending in court.

Companies offering lawsuit cash advances charge interest until the lawsuit settlement becomes available to repay the money that was advanced plus interest. Getting the lowest interest rate may not be as easy as you think because the cost of the money depends on several factors, including whether the funding company charges simple or compound interest.

Rates vary depending on the lawsuit funding company you choose. For example, LawsuitLoans.io offers some of the lowest rates starting at only 2.5% simple interest each month until the money advanced to you is repaid from your settlement. Because the money goes to you as a form of non-recourse loan, the company can only look to your lawsuit settlement as a means of repayment. It cannot come after you personally or seize assets that you own in the unlikely event that you do not win the case.

Wading through the number of settlement loan companies advertising their services can make it difficult to know when you are getting the best deal available. This article takes a look at important things you need to know about settlement funding and some of the things to be aware of when comparing companies to make your search for the best funding option a success. Something to keep in mind as you read through this and start your search is to rely on your personal injury lawyer for advice and guidance in making your decision about litigation funding.

Introduction - probably the most important thing to consider while looking for a lawsuit loan is the interest rate.
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Get up to $500,000 with rates as low as 2.5% simple, monthly

Key Takeaways - Here's what we cover in this article.
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Key Takeaways

These are the key items we cover in this article:

  • Pre-settlement funding is a non-recourse option when you need to borrow money pending the settlement of a personal injury lawsuit.
  • Interest charged by the best lawsuit loan company is typically between 2.5% to 4% simple interest per month.
  • Shopping and comparing rates offered by legal funding companies lets you find the lowest interest rates and best terms for pre-settlement funding.
  • Compound interest charged by some pre-settlement funding companies increase the cost to you in comparison to simple interest that is not compounded.

What Is The Lowest Interest Rate For Pre-Settlement Funding?

Some of the lowest interest rates offered pre-settlement funding can be found at LawsuitLoans.io. We offer rates as low as 2.5% simple interest per month. Our competitors frequently charge 3% to 4% compounding interest per month.

Remember that interest accrues from the date you receive your advance until your case settles and the funding company is repaid in full. A quick settlement that allows the money advanced to you plus interest to be repaid within a matter of months will be less costly if the insurance company for the defendant refuses to negotiate in good faith and causes the settlement to be delayed.

As an example of how simple interest works at LawsuitLoans.io, assume that you need $10,000 to pay medical bills and other pressing financial obligations. If you qualify for 2.5% simple interest, it will cost you $250 a month for each month from when you receive the funding, but your personal injury attorney handling your case manages to convince the defendant’s liability insurance company of the strength of your claim for damages and it agrees to a fair settlement.

When the settlement check is issued by the insurance company, it goes to the law firm representing you in the case for deposit into its escrow account or attorney trust account. When the check clears, your attorney writes the following checks against the settlement funds:

  • The law firm to pay attorney fees it earned and reimburse it for litigation costs, such as filing fees and other litigation expenses, advanced by the law firm.
  • Also paid from the settlement funds are liens filed by third parties, such as doctors or hospitals for unpaid medical bills, health insurance companies that paid claims related to the injuries, and other lien holders.
  • A check written on the balance of the settlement funds goes to the lawsuit funding company to repay the cash advance and interest it earned from the date the pre-settlement funds were disbursed to you until the date of repayment.
  • A check for the remaining net proceeds of the settlement is written to you by your lawyer.

LawsuitLoans.io has a lawsuit loan calculator that you can use when shopping for legal funding options to give you an idea of how much it will cost for a lawsuit settlement advance from them.

What Is The Lowest Interest Rate For Pre-Settlement Funding - Learn more about the lowest rates we've seen in the litigation finance industry.
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What Is The Average Rate For Pre-Settlement Funding - Rates vary heavily within the industry. We estimate that the average rate for pre-settlement funding is around 3%, compounded monthly
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What Is The Average Rate For Pre-Settlement Funding?

LawsuitLoans.io reports the average rate for pre-settlement funding as typically ranging from 3% to 4%, compounded monthly. However, other sources report that some settlement lawsuit loan companies charge rates as high as 60% per year. The extreme range of what a lawsuit cash advance costs must be weighed against the benefits it offers.

The obvious benefit typically associated with the ability to access a cash advance is to address financial troubles caused by being out of work either temporarily or permanently while awaiting the settlement or jury award that you expect to receive from a lawsuit. There is, however, another benefit to plaintiffs that may not be as obvious.

Liability insurance companies understand the financial hardship someone goes through while a lawsuit slowly makes its way through a state or federal court system. However, some insurance companies see a plaintiff’s financial troubles as good news because they know some people will pressure their lawyers into pushing for a quick settlement for far less than the actual value of the claim.

A settlement cash advance that lets the plaintiff pay bills and settle financial issues removes an insurance company’s unfair advantage. It gives the attorney handling the case the time to either achieve a favorable settlement for a plaintiff or move the lawsuit to trial.

How To Find The Lowest Rate

When comparing companies offering pre-settlement funding, one of the difficulties for consumers is they fail to compare apples to apples. For example, a company may advertise the same low interest rate as its closest competitor, but you need to know whether both companies charge simple or compound interest. Simple interest computed monthly will cost substantially less than compounded interest, so you need to know the type of interest in addition to the rate to do a comparison of the two companies.

CompareLawsuitLoans.com offers an excellent online resource for comparing pre-settlement funding companies to help you in your search for the best deal. The website has evaluations and comparisons of dozens of funding companies allowing you to read about and compare them against each other. It also has valuable resources for plaintiffs to help them search for the company offering the best option for them.

Discuss with your attorney what you learned from contacting and comparing lawsuit funding companies. A personal injury lawyer may have first-hand experience with settlement funding companies from prior dealings on behalf of other clients. The lawyer’s perspective could be useful in helping you decide on the company to apply to for a cash advance.

Another benefit of involving your lawyer in the selection process is that it may expedite the application process and underwriting by the company that you eventually choose. This is because the company will rely on your lawyer to provide details about the lawsuit that are needed to determine the following about the case:

  • Strength and likelihood of a settlement.
  • How long it may take to settle the case or go to trial.
  • The value of the expected settlement or judgment.

Depending on the policy of the company funding the cash advance, the consent of your lawyer may be required for you to receive the money.

How To Find The Lowest Rate - The best way to find the lowest rat is to shop around and compare rates from different companies.
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Get $500 – $100,000 as soon as today

We understand that if you’re applying for funding with us, you needed the funding yesterday. With your attorney’s cooperation, we can provide funding as soon as the same day you apply with us.


Pre-settlement funding can be the solution to financial troubles while waiting for settlement of a personal injury claim or another type of lawsuit where the relief sought is a monetary judgment for the plaintiff. Before applying for a cash advance, you want to shop and compare pre-settlement funding companies to find one with the lowest interest rate and best terms.

LawsuitLoans.io offers cash advances against the value of the settlement or jury award in your pending lawsuit at rates as low as 2.5% simple interest per month. Don’t overpay for lawsuit funding. Call LawsuitLoans.io at (866) 594-1343 to learn more, or you can apply online.

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