Pre-settlement funding can be a financial lifeline for plaintiffs in the middle of long legal battles. But while the concept is straightforward—providing upfront cash in exchange for a portion of your future settlement—the pricing models behind it are anything but transparent.

With rates varying dramatically between companies, many plaintiffs find themselves confused or misled about how much they’ll actually repay once their case resolves. This article explains what most funding companies don’t tell you about pricing, how to properly compare offers, and how Instabridge ensures fair, transparent funding every time.

The Truth Behind Pre-Settlement Funding Rates

Most pre-settlement funding companies don’t advertise their rates clearly. Instead, they use vague terms like “low monthly fee” or “simple rate,” which can hide costly compounding interest, aggressive fee structures, and confusing contract language.

Here are some of the pricing tactics often used:

• Monthly compounding rates that drastically increase the amount owed over time

• Upfront processing fees or administrative charges deducted from the funded amount

• Tiered interest rates that climb the longer your case takes

• Prepayment penalties if you repay early

In some cases, plaintiffs end up repaying two to three times the amount they originally received, especially in long-running cases.

Why It’s Difficult to Compare Rates

Unlike traditional loans, pre-settlement funding doesn’t use standardized APR (Annual Percentage Rate) disclosures. Each company uses its own structure, making it hard to understand what you're truly being charged.

For example, one funder may quote a 3% monthly rate—without disclosing that it compounds monthly. Another may charge a flat 15% fee for the first six months but tack on additional fees after that. Without consistent benchmarks, comparing two offers side by side is like comparing apples and oranges.

What to Ask Before You Sign

To protect yourself from excessive repayment obligations, it’s essential to ask the right questions before accepting a funding offer:

• Is the rate fixed or compounding?

• Are there any administrative or processing fees?

• Do I pay anything if I lose my case?

• What’s the total repayment amount if my case settles in 6 months? In 12 months? In 24 months?

• Are there prepayment penalties or early repayment discounts?

Having your attorney review the funding agreement can also help clarify vague terms or identify red flags.

The Impact of Case Length on Repayment

One of the most important variables in repayment is time. The longer your case lasts, the more you will owe—especially if your rate compounds monthly. Many plaintiffs don’t realize how significantly this affects the final repayment amount.

For instance, a $10,000 advance with a 3% monthly compounding rate could cost:

• Around $11,900 after 6 months

• Over $13,400 after 12 months

• More than $15,500 after 18 months

That’s a 55% increase in just a year and a half—all while waiting for your rightful settlement.

How Instabridge Does It Differently

At Instabridge, transparency and fairness are central to everything we do. Our pricing model is designed to protect plaintiffs—not profit from their misfortune.

Here’s how Instabridge stands out:

• Clear, upfront pricing: We provide a full breakdown of costs from the beginning—no hidden fees or unclear terms.

• Simple and fair rates: We offer non-compounding, capped rates whenever possible, so you always know what to expect.

• No repayment if you lose: Our funding is non-recourse. If your case doesn’t result in a settlement or verdict, you owe us nothing.

• No prepayment penalties: If your case settles early, you benefit. There are no extra fees for paying off your funding sooner.

We work closely with your legal team to ensure the funding structure aligns with the projected timeline and value of your case—without putting your future settlement at risk.

Choosing the Right Funding Partner

When you’re financially vulnerable, it’s easy to accept the first offer that comes your way. But making an informed decision can save you thousands in the long run.

Pre-settlement funding should empower you—not trap you. The right funding partner will be upfront, patient, and focused on your best interests.

Instabridge is committed to helping plaintiffs access fair, transparent, and affordable funding while they fight for justice. If you’re considering pre-settlement funding and want to understand your options, our team is here to guide you every step of the way.