Basics
Understanding Lawsuit Loan Rates and Total Cost
• 2 min read
Rates on pre-settlement funding aren't quoted as APR. Here's how to evaluate the real cost and compare across providers.
Pre-settlement funding charges accrue over the life of the case, but unlike a loan, the total payoff is capped in the agreement and only collected if the case recovers.
Reputable funders provide a written payoff schedule showing exactly what you'd owe if the case resolves in 6 months, 12 months, 24 months, etc. That schedule is the only meaningful way to compare offers.
Don't compare 'rates' across companies — compare total payoffs at common timeline assumptions. Some companies use compounding that makes their headline rate look lower while the total cost is higher.
AARC's payoff schedules cap the total amount you'll owe at settlement regardless of how long the case takes. Nothing is hidden.
Always ask any funding company for a written payoff schedule before signing. If they won't provide one, walk away.
Call (800) 297-3834 or apply online for a clear, written payoff schedule from AARC.
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.
