Settlement Funding Interest Rates

Lawsuit loan Interest Rates and Terms

Baker Street Funding provides non-recourse pre-settlement funding with fixed rates, also known as non-compounding interest. This means that your interest will stay the same every month. We also a provide rate cap which means the advance will not accrue additional interest after a three-year time period. If your case settles three (3) years from now or six, you pay the same amount. If your case doesn't settle, you will be debt free.

Examples of our low interest rates for lawsuit loan amounts

The following examples depict the monthly and total interest rates during the life of a $5,000 lawsuit advance. Your actual interest rate may be different than the rates in these examples and will be based on the term of your settlement, the risks of your case, and other factors. If you don’t win your lawsuit in the three-year mark, your interest rate will stop. See our pre-settlement funding eligibility criteria to learn more about how you can get a loan on your lawsuit.

Fixed rate pre-settlement loans - noncompounding

Settlement Date Plaintiff Rates Total Payment
3 months 2.95% - 3.4% $442.50 - $510
6 months 2.95% - 3.4% $885 - $1,020
1 year 2.95% - 3.4% $1,770 - $2,040
1 year 6 months 2.95% - 3.4% $2,655 - $3,060
2 years 2.95% - 3.4% $3,540 - $4,080
2 years 6 months 2.95% - 3.4% $4,425 - $5,100

The interest rate of a lawsuit loan is the percentage of the loan principal that a lawsuit lender like Baker Street Funding charges for borrowing plaintiffs to access the loan funds upon approval. On average, our settlement loan interest rates range from 28% to 41% per year, but this varies depending on the case.

What impacts a low interest rate on a pre-settlement loan?

Your specific lawsuit loan cost depends on how much risk the claim possesses to the company. Plaintiffs with solid lawsuits and reasonable defendant insurance limits qualify for lower rates than those with new cases or issues in the claims. Funding companies calculate rates based on a number of variables. Here are some of the factors that can impact a low-interest rate:

Funding amount

The size of the requested amount can impact the funding rate because the larger the lawsuit loan amount, the more risk to the company. For that reason, lawsuit loans that are over $25,000 often come with a slightly higher interest. But if the suit has already settled, then the rate will be lower no matter the size of the loan.

Case's length

The length of the lawsuit influences the interest rate of the loan—and the loan term ends in the 3rd year. Generally speaking, the longer a case takes to settle, the higher the cost will be.

Case's complexity

Both, the complexity and strength of a lawsuit often predicts the interest rates because they will either pose more or less risk to the investment. For example, if a plaintiff borrower has a personal injury case with prior injuries or has liability concerns, they may default on the loan because the lawsuit may end up as a loss. Lawsuit loan companies lose investments in cases every day. This is why a lower rate is often offered to consumers with strong lawsuits.

Interest rates from the average funding company

We recently performed a study of the number of pre-settlement advances we buy from new clients looking for a better legal financing company. This study shows that the average interest rate on a lawsuit loan was more than 58% a year. This means that most lawsuit lenders that claim to provide ‘low costs’ are charging plaintiffs a lot more than they should. That said, their interest ranged from as low as 3.5% monthly (compounding) for the most qualified applicants and up to 5% compounding a month for those with more complex claimswithout caps. In comparison, the average amount of a pre-settlement funding buyout was more than 58% a year as of August 15, 2021.


Lock in the lowest rate with Baker Street Legal Funding

You can get a loan on your lawsuit by giving us a call at (888) 711-3599 or by applying online now. 

Better rates

At least 50% of approved applicants qualified for a lawsuit loan with a low interest rate. And 100% of our borrowers got a rate cap.


A representative example of an average lawsuit advance is $15,000 for borrowers with personal injury cases and surgeries from the accident with a 2.95% Monthly Percentage Interest (Non-Compounding).

Top lender

Baker Street funding is famous for buying out previous loans from companies who over charge plaintiffs. This is why attorneys love us, because we deliver what we advertise, the lowest lawsuit loan rates—guaranteed.

Ready to apply for lawsuit funding?

Baker Street Funding is mainly known for providing the lowest cost pre-settlement loans nationwide. Find out if you qualify for a same day pre-settlement loan with the best rates available. Our lawsuit finance team is here when you need us. 

Calculate your loan with our lawsuit loan calculator

Check out our lawsuit loan calculator and learn the approximate cost of your loan for your case.

Select a legal funding service to get started. 

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Or just call us at 888.711.3599 to apply.