Michigan Settlement Funding Rates

What Actually Determines What You Pay

Two advances of the same size can cost very different amounts, and the headline rate is rarely the reason. Three things decide the final figure, and only one of them is the number a funder quotes you first.

How long the case runs. Charges accrue over time, so a claim that settles in eight months costs less than the same claim at twenty-six. You do not control this — the court's schedule and the insurer's appetite for argument do — which is why the next two points matter more than they look.

Whether the rate is simple or compounding. A simple rate is charged on the amount you received. A compounding rate is charged on that amount plus the charges already added, so it grows against itself. Over a case that runs two years, the same advertised percentage produces a materially different total depending on which applies. If a funder will not tell you plainly which one they use, that is your answer.

Whether the charge ever stops. Some agreements cap accrual after a set period, so a case that drags does not keep increasing what you owe. Others run until settlement, however long that takes. Since the length of your case is the one variable nobody can promise you, a cap is worth more than a slightly lower starting rate.

What We Do Not Charge

Some of the cost of an advance hides outside the rate, in fees that are quoted separately or not at all. Ours is straightforward on this point:

• No application fee. It costs nothing to find out whether your case qualifies.
• No monthly payments. Nothing is due while your case is open. Repayment happens once, out of the settlement.
• No credit check and no income verification. Approval rests on the case, not on you, so applying does not touch your credit.
• Nothing owed if the case is unsuccessful. This is what non-recourse means. If there is no recovery, there is no repayment — the loss is ours.

How to Compare Two Quotes Properly

Comparing funders on the advertised percentage alone is the most common way people end up paying more than they expected. Ask each funder the same question instead, and ask for it in writing:

"If my case settles in 6 months, 12 months, or 24 months, what is the total amount repaid from my settlement?"

Three numbers, from each funder, on the same advance amount. That single question collapses rate structure, compounding, caps and fees into figures you can actually put side by side — and it is far harder to present favourably than a percentage is.

Two things to confirm alongside it. First, whether the quote includes every fee, or whether application, processing, origination or wire charges are added later. Second, who is actually funding the advance: some companies are brokers who pass your application on, sometimes to several funders at once, which sends your case details further than you intended.

Getting a Figure for Your Case

We do not quote a rate before seeing the case, because the honest answer depends on what the claim is worth, how far along it is and how much you need. Anyone offering a firm number before looking at the file is quoting a headline, not a price.

Call (248) 353-8830 and we will tell you what the advance would cost, in dollars, before you sign anything — and if funding is not the right move for your situation, we will say that too. You can also read how pre-settlement funding works, see the steps involved, or apply online.