Basics
How Much of My Settlement Will Go to Pre-Settlement Funding?
• 2 min read
Most claimants want to know what percentage of the settlement will go to repay the advance. Here's how to estimate it.
The portion of your settlement that goes to repay pre-settlement funding depends on three factors: how much you borrowed, how long the case takes, and the rate schedule in your agreement.
For an advance equal to 10% of your expected settlement on a case that resolves in 12 months, the total payoff typically ranges from 1.3 to 1.7 times the advance amount, depending on the funder.
On a $50,000 settlement with a $5,000 advance, that puts the total payoff around $6,500 to $8,500, leaving the rest of the settlement (after attorney fees and liens) intact.
Borrowing less, settling sooner, and choosing a funder with capped payoffs all reduce the percentage of the settlement consumed by the advance.
AARC always provides a written payoff schedule before you sign so you can see exactly what you'd owe at various case durations.
Call (800) 297-3834 or apply online to see your specific projected payoff.
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.
