Basics
Can I Pay Off My Lawsuit Loan Early to Save Money?
• 2 min read
Most pre-settlement funding agreements allow early payoff at reduced cost. Here's when it makes sense — and when it doesn't.
Pre-settlement funding charges accrue over time. The longer the case takes, the more is owed at settlement. Reputable funders allow you to pay the advance back early at the corresponding lower payoff amount.
Early payoff makes sense if you've come into money from another source (an unexpected sale, an insurance payment, a family loan) and want to stop the charges from accruing.
Most claimants don't have the funds to pay off an advance early — that's why they took the advance in the first place — but the option exists.
AARC's payoff schedule shows the lower payoff amounts at earlier milestones, so you always know what early payoff would cost.
If a funder won't show you the early payoff numbers or charges a prepayment penalty, that's a red flag.
Call (800) 297-3834 to discuss your specific situation.
Frequently asked questions
- What happens if I lose my case?
- Nothing is owed. Because the funding is non-recourse, AARC absorbs the loss if your case does not result in a recovery.
- Is a pre-settlement cash advance a loan?
- No. It is non-recourse funding tied to your personal injury claim. There are no monthly payments, and if your case does not recover, you owe nothing.
- Do I need good credit or a job to qualify?
- No. AARC does not run a credit check and does not require employment or income verification. Approval is based on the strength of your claim and your attorney's representation.
- How fast can I get funded?
- Most approved applicants receive funds in as little as 24 hours once AARC has the case documents from your attorney.
- How much does it cost?
- AARC uses a flat fee rather than compounding monthly interest. Typical advances are $500, $750, or $1,000, and the illustrative payoff at settlement is 2x the advance amount.
About the author
Written by the funding team at AARC — Accident Advance & Resource Center. AARC underwrites pre-settlement cash advances for personal injury claimants and works directly with plaintiff attorneys across 45 states. Our team reviews case documentation daily and writes from that firsthand experience.
This article is general information, not legal or financial advice. Always confirm details with your attorney. Contact AARC or call (800) 297-3834 with questions about your specific case.
