Each funding company sets its own interest rates and fee structures. These rates are typically based on factors such as the strength of your case, the estimated value of your settlement, and how long it’s expected to take. Rates are typically calculated using simple (non-compounding) interest, though some funding companies may apply compounding methods, which can increase the total repayment amount more quickly.
While interest can accumulate over time, a longer case timeline isn’t necessarily a drawback. Instead, it may mean your attorney is pushing back against low offers to secure a higher settlement, which could leave you with more money overall.
“As a leading lawsuit lender, Mustang Litigation Lending is committed to helping individuals, groups, and legal firms make safe and informed choices.”
How Lawsuit Loan Interest Rates Work
As noted above, interest rates for pre-settlement funding — or lawsuit loans — are based on case-specific factors, such as the strength of your claim, the estimated value of your settlement, and how long the case is expected to take. So, an exact rate can’t be determined upfront. A lender must first consult with your attorney, evaluate the case details, and assess the potential risks before offering terms.
Pre-settlement funding is a non-recourse cash advance provided in exchange for a portion of your potential future settlement. Unlike a traditional loan, you are not required to repay the advance if you lose. Expect the interest rates to be higher than those for personal, auto, or mortgage loans. At Mustang Funding, we offer industry-competitive rates for every six months your case is outstanding.
Your exact rate, though, depends on various factors relating to the specifics of your case. If you’re approved for funding with us, we’ll send an agreement detailing the terms.
Apply for Pre-Settlement Funding Today
Getting the Funds: What to Expect
To qualify for pre-settlement funding, you must have an active case and representation by an attorney. After filling out an online application with your lawyer’s contact information, the funding company consults them to determine the likelihood of winning and the potential settlement or jury verdict.
If the company agrees to provide funding, an agreement is sent to your attorney outlining all terms, including the interest rate. You should discuss with them the pros and cons of obtaining pre-settlement funding in the context of your case, but the ultimate decision rests with you, the plaintiff.
Once the agreement is signed and returned to the funding company, you should receive your funding within 24 to 48 hours.
Contact Mustang Funding Today
Have questions about how interest rates work or what terms might apply to your case? Contact Mustang Funding today to find out whether pre-settlement funding is the right solution for you. Learn more from our ultimate guide to pre-settlement funding. We provide best-in-class capital solutions for law firms, plaintiffs, litigation vendors, and other legal assets.
