Rates aren't quoted as APR because there's no fixed term. Here's how to think about the real cost of an advance.
Pre-settlement advances accrue charges over time, but unlike a loan, the total cost is capped and only collected if the case resolves favorably.
AARC quotes a clear payoff schedule: if your case resolves in six months, you pay X. In twelve months, Y. In twenty-four, Z. Nothing is hidden.
Costs reflect the risk we take. Cases that lose still cost us the principal we advanced. The cases that win cover those losses.
Always ask any funding company for a written payoff schedule before signing. Compare the total cost — not just the rate — across providers.
Why APR doesn't apply here
APR is a meaningful measure when you know how long the loan will be outstanding. With pre-settlement funding, the term is unknown — your case may resolve in three months or three years.
Instead of an APR, AARC quotes a clear payoff schedule: 'if the case resolves by month X, you pay Y.' That schedule lets you see exactly what the advance will cost at any point in time.
What drives the cost
Costs reflect two things: the time the money is outstanding, and the risk that the case will not recover.
Cases with strong liability, clear damages, and solid coverage carry lower risk and qualify for lower-cost funding. Weaker cases carry higher risk and higher cost.
Caps and protection
AARC caps the total payoff so that no matter how long your case takes, you cannot owe more than the cap stated in your agreement.
That cap protects you from compounding fees on a case that drags on for years.
How to compare funders
Always ask for a written payoff schedule. Compare the total cost at the 12-, 18-, and 24-month marks across funders.
Lower upfront rates with no cap can produce higher total costs than higher upfront rates with a cap. The total cost at your expected resolution date is what matters.
Talk to AARC before you make a financial move you'll regret
Every situation is different, and the right answer depends on the specifics of your case, your timeline, and what you need the money for. The single best thing you can do is have a short, no-pressure conversation with someone who funds these cases every day.
Call AARC at (800) 297-3834 or apply online in about three minutes. There is no credit check, no obligation, and no cost to find out what you qualify for. If a cash advance isn't the right tool for your situation, we'll tell you that too.
