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What is settlement advanced funding?
Settlement advanced funding, also known as settlement funding or lawsuit funding, is a financial service that provides plaintiffs with an advance on their expected settlement or jury award. The funding is typically provided by a third-party funding company and is designed to help plaintiffs cover their living expenses, medical bills, and other expenses while they wait for their case to settle.
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How much funding can I receive?
The amount of funding you can receive varies depending on the specific facts of your case and the funding company you work with. Typically, funding companies will advance between 10% to 20% of the expected settlement or jury award.
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How does repayment work?
Repayment of settlement advanced funding is typically done on a contingency basis. This means that if you lose your case, you won't be required to repay the funding. If you win your case, the funding company will be repaid from your settlement or jury award. The amount of repayment will typically include the original amount advanced plus fees and interest.
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What are the fees associated with settlement advanced funding?
Funding companies typically charge a variety of fees, including application fees, processing fees, and interest charges. The fees can vary widely depending on the funding company and the specific terms of your funding agreement, so it's important to carefully review and understand the fees before accepting funding. Is settlement advanced funding a loan?
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Is settlement advanced funding a loan?
No, settlement advanced funding is not considered a loan. Instead, it's considered a non-recourse cash advance. This means that the funding company assumes the risk of the case and is only entitled to repayment if you win your case.
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How long does it take to receive settlement advanced funding?
The time it takes to receive settlement advanced funding can vary depending on the funding company and the specifics of your case. Typically, it can take anywhere from a few days to several weeks to receive funding.
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What is the difference between simple interest and compound interest?
Simple interest is calculated only on the principal amount of the loan or investment. The interest amount is a fixed percentage of the principal, usually expressed as an annual percentage rate (APR). The interest is calculated based on the principal amount and the time period for which the loan or investment is taken. The formula for calculating simple interest is: Compound interest, on the other hand, is calculated on both the principal and the accumulated interest from previous periods. The interest is added to the principal at the end of each compounding period (usually monthly or annually), and the new principal amount is used to calculate the interest for the next period.
