The cost of pre-settlement funding for a personal injury case depends on the specifics of that case, how long it takes to settle, and which funding company you work with. There is no single flat price that applies to everyone.
Whatever your funding costs, pre-settlement funding is non-recourse. If your case is not successful, you owe nothing back. The cost only applies when your case succeeds and you are paid. At Go Philly Funding, there are no application fees and no hidden costs, and we do not run a credit check. Your approval is based on the strength of your case.
What Goes Into the Cost?
For litigation funding, which is also called pre-settlement funding, the cost of an advance in a personal injury case usually comes down to a few key things:
- Interest on the amount advanced. Most companies charge a periodic rate on the funds advanced to you, set at the time you sign. The longer your case takes to resolve, the more interest adds up, because the funds are in your hands for that much longer.
- A one-time fee, in some cases. Some companies charge a fee when they release your funds, such as an origination, processing, or delivery fee. Not every company charges one.
The number that matters most is the total: what you will owe, and when.
Why Isn't There One Set Price?
There is a reason you cannot search "pre-settlement funding rates" and get a single number. Every case is different, and the cost depends on factors specific to your situation:
- Case type. A straightforward rear-end car accident on Roosevelt Boulevard may be evaluated differently than a complex medical malpractice case at a Philadelphia hospital.
- Case strength. Cases with clear liability and solid evidence typically receive better terms.
- Expected timeline. A case that resolves in months will usually cost less than one that takes years, because interest accrues over time.
- Funding amount. The size of the advance relative to your expected settlement affects the overall cost.
This is why a rate can only be set accurately after a company reviews the specifics of your case.
What Am I Paying For?
The cost of pre-settlement funding comes down to risk. When a funding company advances you funds, it takes on the full risk of your case. If your case is successful, the advance is repaid from your settlement. If it is not successful, the company absorbs the loss, and you owe nothing from your own pocket. That is what non-recourse means. The company is taking a risk on your case, not on you personally, and the cost of funding is the price of carrying that risk.
What you get is relief while the case is pending, for the things that do not wait: rent, groceries, car payments, medical bills. Because those are handled, you and your attorney can hold out for what the case is worth instead of taking an early offer just to get by. The advance is repaid at the end, out of the settlement.
Before You Commit
Before you commit to funding from any company, ask for clear answers to these questions and get them in writing:
- What is the total I would owe, and how might it change the longer my case takes?
- Will you put that total in writing before I sign?
- Besides the interest rate, are there any other costs, such as an origination, processing, or delivery fee?
- Is the amount advanced to me limited to a portion of my expected settlement?
- Will you go through the terms with me and answer my questions before I commit?
Get the answers in writing and keep them. The clearer the answers, the better you can compare one company to another.
How Does Go Philly Funding Handle Cost?
When you receive funding from us, you get a written schedule we call the SOAP, our Schedule of Agreed Upon Price. From day one, it shows what you owe now and what you will owe as time goes on, in one clear schedule. We go through it with you before you sign, so you are clear on the structure, the payment schedule, and the terms before you commit.
If you call months into your case and want to know where your balance stands, Norris Jordan, who owns the company, will pull up your SOAP and go through it with you on the phone. He set the terms, so he can explain them without checking with anyone.
He also asks every new client whether they have had funding before. People who have often do not know what they still owe that company, and that number matters as much as the cost of a new advance does. If that is your situation, ask the other company for your schedule, and we will go through it with you alongside ours.
We charge no application fees. We also do not run a credit check, because your approval is based on the strength of your case, not your credit score or your bank balance. And if your case is not successful, you have no personal obligation to repay Go Philly Funding from your own assets or income. For figures on your own case, contact us and we will review it before you commit to anything.
Is the Cost Worth It Compared to Your Other Options?
The clearest way to judge the cost is against what else is available when the bills are due and a settlement is still months away.
The Consumer Financial Protection Bureau states that "a typical two-week payday loan with a $15 per $100 fee equates to an annual percentage rate (APR) of almost 400 percent." Many cost more, and the repayment window is two weeks, not the length of your case.
Credit cards cost less than that, but the interest is still high and a growing balance damages your credit while you wait.
Borrowing from family carries no interest. It can put strain on the relationships you rely on most.
Payday loans, credit cards and money from family share one feature. You owe it whether your case is successful or not. Pre-settlement funding does not work that way.
Accepting a lowball settlement early is potentially the most expensive option on this list. When financial pressure forces the decision, you may settle for far less than your case is worth, and that gap does not come back.
Pre-settlement funding carries a real cost, and that cost reflects the risk a funder takes on a case with no guarantee of repayment. What it buys is room: your attorney negotiating on what the case is worth instead of against your rent. For many injured plaintiffs across Philadelphia and the surrounding counties, the cost of not having that room is far higher.
If you are dealing with financial pressure while your personal injury case is pending, apply for funding at gophillyfunding.com/apply. No application fees. No credit check. Funds in as little as 24 hours.