Lump sum vs. monthly advance (installments): which one fits your case?
Most pre-settlement funding is delivered as a single lump sum, deposited into your account within 24 to 48 hours of signing the contract. That works well for emergencies — surgery costs, back rent, an unpaid medical bill, a car you need to get to work. [See our standard funding timeline → /when-do-i-start-collecting-pre-settlement-funding/]
But a lump sum has two real downsides for plaintiffs with large, long cases:
- Interest accrues on the full balance from day one. If you take $50,000 at once but only need $5,000 a month, you’re paying fees on the unused balance for as long as your case lasts.
- Money managed in a lump is harder to stretch. Plaintiffs who receive one large check sometimes burn through it in the first few months — which is exactly when many cases are just hitting their longest stretch of waiting.
A scheduled monthly advance solves both problems.
You receive only what you need each month, fees accrue only on disbursed funds, and you get budgeting discipline built into the contract.
| Lump-Sum Advance | Scheduled Monthly Advance | |
|---|---|---|
| Best for | Immediate large expenses, emergencies | Multi-year cases, large settlements, predictable monthly costs |
| Typical case size | $50K – $750K | $150K+ |
| When you get it | Hours after signing | First payment in 24–48 hours, then monthly |
| Interest on unused funds | Yes — accrues on the full balance | No — only on funds already disbursed |
| Budgeting | You manage it | Built in |
| Non-recourse | ✅ | ✅ |
| Rate | 2.95%/month, non-compounding | 2.95%/month, non-compounding |
| Repayment | At settlement, from settlement | At settlement, from settlement |
Who actually needs monthly advances?
Not every large case is a fit for scheduled advances. Based on the contracts we structure most often, this option works best for four specific plaintiff types:
Wrongful imprisonment exonerees.
Wrongful conviction cases regularly settle for $1M–$10M+, but the civil litigation typically runs 2–5 years after release. Exonerees often have no employment history, damaged credit, and no savings — and most desperately need stable monthly cash flow to rebuild housing, transportation, and basic life infrastructure, not a one-time windfall.
Catastrophic or severe injury plaintiffs.
Spinal cord injuries, traumatic brain injuries, and amputations often produce settlements in the seven figures, but the cases drag for 18–36 months while damages are documented. Predictable monthly funding lets families budget for in-home care, equipment, or transportation modifications without watching a lump sum drain.
Wrongful death plaintiffs.
Surviving spouses or children dealing with the loss of a household income earner often need monthly mortgage and living-expense relief, not a lump payout that creates its own tax or benefits-eligibility complications.
High-value civil rights cases.
Police brutality, false arrest, and police negligence cases under 42 U.S.C. § 1983 often produce strong settlements but spend years in federal court. Monthly disbursements smooth the wait.
If your case fits one of these profiles and is estimated at $500,000 or higher, scheduled advances are usually the right structure to ask about during your application.
How a scheduled monthly advance contract is structured.
Every contract we write follows the same skeleton, with terms customized to your case. Here’s exactly how the math works:
Total advance amount.
Capped at roughly 10% of the estimated settlement value, consistent with our standard underwriting and ALFA aligned responsible-funding standards. On a $2,000,000 case, that’s up to $200,000 in total advances.
Disbursement schedule.
Set jointly with you and your attorney, based on your monthly budget and the expected timeline to settlement. Common schedules:
- $3,000/month for 6 months ($18,000 total)
- $5,000/month for 12 months ($60,000 total)
- $10,000/month for 24 months ($240,000 total — for very large cases)
- Custom: variable monthly amounts, or an upfront amount plus monthly top-ups
Interest accrual.
Fees accrue only on funds that have been disbursed. If your contract is $5,000 × 12 months and you’ve received 4 payments ($20,000), fees only accrue on the $20,000 that’s actually in your hands — not on the $40,000 still to come. This is meaningfully different from compounding lump-sum advances offered by some funders.
Rate.
Our standard 2.95% per month, non-compounding, capped at 3 years.
Repayment.
Paid in one transaction by your attorney from the settlement, just like a standard pre-settlement advance. You make no monthly payments to us, ever.
How repayment works →
Non-recourse.
If you lose your case or recover nothing, you owe zero — regardless of how many monthly disbursements you’ve received.
A real-world example.
A wrongful imprisonment exoneree releases from prison with a $4 million civil rights claim expected to settle in 30 months. They have no income, no credit, no housing.
A standard lump-sum advance might offer $400,000 (10% of case value) all at once. That sounds great, but:
- Interest accrues on the full $400,000 from day one
- After 30 months at 2.95% non-compounding, accrued fees would be ~$354,000
- Total owed at settlement: ~$754,000
- And the lump sum has to last 30 months — a real risk
A scheduled advance of $10,000/month for 30 months (also $300,000 total):
- Fees accrue on a balance that grows month by month
- Month 1 fees: 2.95% × $10K | Month 30 fees: 2.95% × the balance built up to that point
- Total fees end up materially lower — closer to $175,000 at 30 months
- And the plaintiff gets consistent, manageable cash flow
The same product, two structures, very different total costs and life impact. This is why the conversation matters.
Exact figures depend on your specific contract; the numbers above are illustrative. Always review the written disclosure with your attorney before signing.
How to apply for a scheduled monthly advance.
The intake is the same as our standard funding, with one extra conversation:
Apply online or call (888) 711-3599.
Tell us during the call that you want monthly disbursements rather than a lump sum, and the monthly amount you're targeting.
Attorney coordination
We coordinate with your attorney to confirm case value, expected timeline, and documentation.
Case review
Underwriting reviews and proposes a schedule. We'll send the written contract showing every monthly disbursement date, the total accrued-fee projection at 6, 12, 18, 24, and 36 months, and the cap.
You and your attorney sign.
You and your attorney sign. The first disbursement is wired within 24 to 48 hours. Subsequent disbursements arrive on the schedule in your contract.
You can stop the schedule early at any time — there’s no penalty for not taking the remaining months. Fees stop accruing on any undisbursed balance because they never started.
Ready to discuss your case?
If your case is worth $500,000 or more and you’d rather have predictable monthly cash flow than a single lump sum, apply online →or call (888) 711-3599. A funding specialist will walk through your situation, talk to your attorney, and design a schedule that fits both your monthly budget and your case timeline.
All funding decisions are made by Baker Street Funding’s in-house underwriters. Terms are disclosed in writing before you sign, and you owe nothing if your case is unsuccessful.
FAQ.
Is monthly pre-settlement funding still non-recourse?
Yes. Every Baker Street funding product, including scheduled monthly advances, is non-recourse. If you do not win your case, you owe nothing — regardless of how many monthly payments you’ve already received.
What's the minimum case value for a scheduled monthly advance?
We typically structure monthly schedules on cases estimated at $150,000 or higher, though we’ll review smaller cases case-by-case where the plaintiff’s circumstances clearly call for it (active medical treatment, exoneree status, dependents).
Can I change the monthly amount after the contract is signed?
Modifications are possible by mutual agreement — typically when your case develops in a way that changes your projected need (new medical findings, change in employment status, new offer on the table). Contact your funding specialist to discuss.
Do I pay fees on the full contract amount or only what I've received?
Only what you’ve received. Fees accrue on disbursed funds, not on the undisbursed portion of the contract. This is one of the biggest financial advantages of scheduled funding over a lump sum for long cases.
Can I take a lump sum first and then start monthly advances?
Yes. We can structure a hybrid contract — for example, $20,000 upfront for immediate needs followed by $5,000 monthly for 12 months. Many of our exoneree and catastrophic-injury contracts use this structure.
What if my case settles before all my monthly payments are made?
The remaining undisbursed payments are simply not made. Your attorney repays what you’ve actually received, plus the accrued non-compounding fees. You’re never charged for money that wasn’t disbursed.
Do I need a different kind of attorney for this?
No. Any attorney representing you on contingency can coordinate scheduled funding the same way they would coordinate a lump-sum advance.
