The General Rule
Most reputable funders cap advances at 10%–20% of the case's estimated settlement value. On a $100,000 case, that means $10,000–$20,000 in funding — sometimes more for very strong cases.
Why the Cap Exists
It protects you. If advances and fees consumed too much of the settlement, you'd take home very little. The cap ensures the math still works for you at settlement.
What Drives Case Value
- Liability strength. Clear fault means a larger valuation than disputed fault.
- Damages. Medical bills, lost wages, pain and suffering, permanent impairment.
- Insurance limits. Settlements rarely exceed available coverage.
- Jurisdiction. Some venues produce larger settlements than others.
Multiple Advances
Many plaintiffs return for additional advances as a case matures and value becomes clearer. Each advance is evaluated against the running total to keep you within safe limits.
How to Estimate Your Maximum
Ask your attorney for a rough case-value range. Apply 10%–20% to the low end. That's your conservative funding ceiling. Funders may approve more — but more isn't always better.
Sources & Further Reading
For broader context, see Federal Trade Commission — consumer guidance on financial products. This article is general educational information and does not constitute legal or financial advice.
Frequently Asked Questions
No. Reasonable funders cap advances well below the case's expected value to ensure you take home a meaningful net.
Notify the funder. Updated valuations may support additional advances.