How Much Does Lawsuit Funding Really Cost?

Lawsuit loans take a bite out of your settlement - only take what you need.

For most things in life, it’s pretty easy to figure out how much something will cost. If you want to buy a new jacket, you go to a store, see a price tag, and that’s it. You’ll have to add a little bit extra for tax, but otherwise, you know the cost. You can shop at multiple stores to try to find a better deal, but there’s no more research needed.

With bigger transactions, like purchasing a home, it can be more confusing. One area where it can get a little overwhelming is when trying to obtain a legal loan while your lawsuit continues. It’s not a simple as “If I borrow $10,000, I’ll pay back $12,500 no matter what.” Here is a explanation of the costs associated with lawsuit funding.

Up-Front Costs (What You’ll Pay Before You Get Money)

The short answer is NOTHING. You should not ever pay money when applying. If you are with a company who is charging you simply to review your case, you’re with the wrong company. Firms like Uplift Legal Funding will never charge you money to review your case. The only fees you’ll ever see happen after money is already in your hands.


Let’s say you’ve been approved for funding to help you last through the end of your lawsuit. That’s fantastic news. But as the old adage goes: nothing comes for nothing. A company that doesn’t charge you any fees wouldn’t stay in business very long.

Fees are often written into the contracts you get when you are approved. You STILL don’t need to pay them right away. Companies factor in these fees into the amount you’ll pay back when your case settles. Different types of fees you could see:

  • Processing/application fees: this is often a small amount that pays for the people who work at the company to process your application and paperwork.
  • Underwriting fee: most companies won’t charge both a processing fee and an underwriting fee. This is usually for more complicated cases where a special underwriter is needed to review your case.
  • Origination fee: sometimes a case is so specialized that your lender may have a partner who can better provide more money to you. This is a small fee that pays your funder for finding the right home for your case.

Again, none of these fees are paid up front. They are calculated when your case settles and your attorney simply pays the funder what is owed according to the contract.

Interest Rate/Risk Percentage

This is a big factor in how much you will have to repay. The rate that is charged is a percentage that would accumulate depending on how long your case takes to pay out. There are different types. Some compound monthly, some quarterly, some annually. Other companies offer rates that are simple interest, they don’t compound at all. In either case, the rate usually accumulates on the total amount you receive plus your fees.

This can get a bit confusing if you’re not a numbers person, but there’s an easy way to see what you’d owe. A reputable company will send you a contract that has a chart in it showing exactly how much you owe depending on how many months it takes your case to settle. This amount will include ALL fees and it’s very easy to understand.

If you receive a contract that has no chart with easy-to-see numbers, consider moving to another company like Uplift. They will get you a contract that is easier to understand.

What Do I Owe if I Lose my Case?

Nobody goes into a lawsuit expecting to lose, but sometimes it happens. It’s always a shame not get the financial justice you deserve. But there is good news in that unfortunate situation. If your case gets a defense verdict and you cooperated with your attorney and the judge, you won’t owe your funding company anything. Nothing. Any company that says you owe them money if you lose your case is not a company worth working with.

Fees and rates vary from company to company, and even from case type to case type. Uplift Legal Funding can get the best rates in the industry and will work with you to get a deal that works for everyone. Call us today to see if you qualify for funding and we’ll make sure you don’t have to sell the farm to do it.

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