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Editor: Lauren Lipcon
Profession: IFN Program Director

Various lawsuit funding companies use different fee structures. The common factor among all fee structures is that they are all non-recourse, meaning fees are only incurred upon a successful recovery.

Most lawsuit funding companies will offer a monthly fee structure. Monthly fee structures will vary between 2.9%/ month and 15%/ month of the amount advanced. Most companies do compound their fees monthly.

Only very few funding companies will offer a flat fee structure. Flat fee structures charge a percentage of the total recovery, however many times this is capped at a certain dollar amount. Flat fee structures are designed to alleviate risk of a case dragging on for a very long time.

When deciding to use lawsuit funding it is very important to compare fee structures and make sure you know what all the fees are upfront. Most funding companies charge hidden fees, closing fees, application fees (only if funded), broker fees and more. These add-on fees can really be tricky and it is best to use a company that does not charge any of these fees.

Some companies may seem to have the lowest rate by charging only 2.9%/ month, but once they add on all the other fees, it really ends up being even more than had you gone with a company charging 8%/ month and no hidden or add-on fees. Also some companies do not use compounding, which can be a real money saver.

One company, Injury Funds Now, does not use any hidden or add-on fees, plus they will allow all their clients to choose between a monthly and flat rate fee structure. Injury Funds Now will even provide you with a comparison of their fees vs. other companies offer, and on their monthly fee structure does not use compounding.

If you have been injured in an accident and would like to apply for lawsuit funding, use the form at the top right of this screen to contact us.