Amount advanced
The amount advanced is the cash provided to the applicant. It is the starting number used to calculate the final payoff.
CasePayNow resource
Pre-settlement funding costs and payoff examples
Compare cost terms before accepting a settlement advance or lawsuit funding agreement.
Cost basics
What can affect the payoff amount
The cost of pre-settlement funding can change based on the amount advanced, initial fees, administrative fees, time-based charges, whether charges are simple or compounding, payoff caps, later additional advances, case delays, and the exact contract language. Always review the agreement with your attorney before signing.
Initial fees
Some agreements may include an origination, processing, underwriting, document, or setup fee at the beginning of the transaction.
Time-based charges
Charges may be added monthly, every six months, annually, or on another schedule listed in the written agreement.
Simple charges
Simple charges are usually calculated on the original amount or a stated base amount, depending on the contract.
Compounding charges
Compounding charges can grow faster because each new period may calculate charges on a growing balance.
Administrative fees
Administrative fees may include wire, servicing, document, filing, transfer, or other listed charges.
Payoff caps
A payoff cap may limit the total amount due, but caps vary and may not apply to every fee or every agreement.
Additional advances
Taking more funding later may create a new payoff schedule, add fees, or change the total amount due at settlement.
Case delays
Delays from treatment, discovery, mediation, trial, appeal, or insurance negotiations can increase the payoff if charges continue over time.
Hypothetical examples
Example payoff timelines
Hypothetical simple-charge example only: $2,500 amount advanced, $250 initial fee, $75 administrative fee, and a 3% monthly simple charge calculated on the $2,500 advance. This is not an offer, quote, approval, or prediction of your terms.
6 months
Simple charge: $450. Estimated payoff: $3,275.
12 months
Simple charge: $900. Estimated payoff: $3,725.
18 months
Simple charge: $1,350. Estimated payoff: $4,175.
24 months
Simple charge: $1,800. Estimated payoff: $4,625.
Compare calculations
Simple vs. compounding examples
Hypothetical comparison using a $2,500 advance, $250 initial fee, $75 administrative fee, and a 3% monthly charge. The simple example calculates 3% monthly on the original $2,500 advance. The compounding example calculates 3% monthly on a growing balance, then adds the same $325 in fees.
| Timeline | Simple 3% monthly example | Compounding 3% monthly example | Why applicants should compare |
|---|---|---|---|
| 6 months | $3,275 | About $3,310 | Short timelines may look similar, but details still matter. |
| 12 months | $3,725 | About $3,891 | Compounding starts to separate from simple charges over time. |
| 18 months | $4,175 | About $4,583 | Case delays can make the calculation method more important. |
| 24 months | $4,625 | About $5,408 | Ask whether a payoff cap applies and what the cap includes. |
Agreement warning
Actual funding agreements vary
These examples are educational only. Your actual agreement may use different rates, fees, timing periods, minimum charges, payoff caps, additional-advance terms, cancellation rights, attorney obligations, or repayment language. Do not rely on a sample calculation as your expected payoff. Ask for written payoff examples from the provider and review them with your attorney.
Next steps
Estimate and review before signing
Use the funding calculator to test different timelines, then use the contract checklist to ask about fees, caps, additional advances, and what happens if the case is delayed or resolves for less than expected.
Topic cluster
Related resources for this topic
Use these links to compare the larger funding question before applying.
Cost clarity
How to compare funding costs before accepting an offer
This page now gives applicants a clearer cost-review process: identify the funded amount, understand charges, test timelines, ask about caps, and compare payoff examples before signing.
Direct answer
The true cost depends on the written agreement, not a headline number. Ask how fees are calculated, when they are added, whether they compound, and whether any cap applies.
Timeline risk
The longer a case takes, the more important the fee structure becomes. Compare 6, 12, 18, and 24 month examples before accepting funds.
Additional advances
New advances can create new fees, new payoff schedules, and a larger total repayment from settlement proceeds.
Attorney review
Cost questions should be reviewed with the attorney because fees, liens, costs, and prior funding all affect the client's net settlement.
Review checklist
Cost review checklist
Use this before signing a funding agreement.
Documents to gather
- Written offer and full agreement
- Payoff examples at multiple timelines
- Fee schedule, rate period, compounding language, and cap language
- Prior funding payoff, liens, and estimated settlement deductions
Questions to ask
- What is the total payoff at different timelines?
- Are charges simple, compounding, fixed, or tiered?
- Does the cap include all fees?
- What happens if I need additional funding later?
Before signing
Compare cost against the problem you are solving
Funding may help with urgent pressure, but applicants should compare the cost with lower-cost options and request only what they reasonably need.
Attorney cooperationThe attorney can help compare funding payoff against expected settlement timing.
Net recoveryCosts should be evaluated alongside liens, fees, prior funding, and expected net recovery.
Written termsThe written agreement controls. Samples are educational only.
Right next stepUse the calculator to test timelines before accepting an offer.
FAQ
Funding cost questions
Is the advertised rate the whole cost?
Not always. Fees, timing, compounding, caps, and additional advances can affect payoff.
Can payoff grow if the case is delayed?
Yes, depending on the agreement.
Should I ask for a payoff cap?
Ask whether a cap exists and exactly what it includes.
Are examples an offer?
No. Examples are educational unless written into your actual agreement.
Related resources
Cost comparison tools
Use these resources before signing written terms.
Important limits
Funding claims depend on the final review
Approval is not guaranteed. Funding amounts, timing, fees, state availability, attorney participation, repayment language, and whether funding is non-recourse depend on the case facts, provider review, signed agreement terms, and final approval. Traditional credit and employment are generally not the main review factors, but provider requirements can vary.