Will Taking Funding Hurt My Final Settlement Amount?
4 mins read
Published Apr 2, 2025
The Myth of "Losing Out"
A common worry among plaintiffs is that taking a cash advance now will eat up their entire settlement later. While it is true that you have to repay the advance plus interest, the idea that it destroys your settlement value is largely a myth—if you use it correctly.
Think of funding as a tool. If used wisely, it doesn't just subtract from your final check; it buys you the time to increase the size of that check. The cost of the funding is often much smaller than the extra money your attorney can win by having the time to fight properly.
How Funding Increases Negotiation Power
Insurance companies are experts at waiting. They know you have bills to pay, and they offer low settlements early on, hoping you are desperate enough to take them. If you are broke, you might be forced to accept $20,000 today instead of the $100,000 you deserve.
By taking a small advance (e.g., $2,000) to cover your immediate rent or bills, you remove that desperation. You can tell your attorney, "Take your time. I'm okay for now." This allows your lawyer to reject lowball offers, hire experts, and build a stronger case, often resulting in a significantly higher final payout.
Keeping It Safe: The 10-20% Rule
To ensure you still receive a substantial check at the end of your case, we generally limit funding to 10-20% of the estimated case value. This conservative approach protects you.
We don't want to over-fund you. Our goal is to give you just enough to survive the waiting period comfortably, ensuring that when the big check finally comes, the majority of it goes straight into your pocket, not ours.
