If you have been injured in an accident and are now out of work, you might be in need of money to make ends meet before your lawyer settles your lawsuit. Per-settlement funding companies can make you a cash advance. But, be very careful about understanding exactly how much they are charging. Their terms and conditions can often be very tricky. For example, let’s say you take $2,000.00 from a funding company that will charge you 3% per month compounded along with a $350.00 application fee. You need to understand that the company will add the $350.00 to your $2,000.00 cash advance and start charging interest per month on the combined figure of $2,350.00. That application fee of just $350.00 can turn out to be very expensive. If your case takes three years to settle, the $350.00 application figure all by itself will end up costing you $1,014.00. WOW! What you thought was going to be a one time application fee of $350.00 will now cost you almost three times that amount. In addition, you will be paying 3% compounded on the $2,000.00 cash advance you received. Your total lien which you will have to pay the company at the end of three years will now cost you $6,811.00. The lesson is: Do not take a cash advance from a funding company that charges application fees. It will cost you a lot more than you think.
Legal Capital does not charge any application fees. Nor do we charge interest. Take a look at our section on pricing which will explain the advantages of our flat-fee pricing.