Which is better, monthly compound interest or a flat fee for my lawsuit advance?

July 21, 2008

Until recently most companies offered one or the other but not both. I offer you both because I know that some of my clients and their attorneys can predict with accuracy when the case will settle. For this situation I would only recommend the monthly compound interest structure. The only other reason i wuld elect to use this structure is if one of my clients is fixated on the monthly rate. In addition to the lawsuit cash advance, the finance company adds a $250 processing fee and a broker commission (if a broker is involved). That all grows at interest.

The flat fee structure is great because there are no fees. Only the amount advanced is growing at interest. While the client has to pay for 6 months interest even though it may have settled in month 13, they still come out ahead because in the finance game it isn’t only the rate that matters. What matters most is the principal or the amount advanced.

If you are seeking a lawsuit loan use a presettlement funding broker so he or she can help you decide which is best for you. The brokers also tpically provide better service than you would get by going direct because their livelihood depends on it.

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Posted by Rob Thomas | Filed Under Blog, lawsuit advance, lawsuit cash advance, presettlement funding 

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