Cap
A cap is a hard ceiling on the total amount repayable on an advance, expressed as a multiple of the amount advanced — beyond which the balance stops growing regardless of how long the case runs.
Get Lit Money caps repayment on the advance at 2×. On a pre-settlement advance the capped amount applies to any case that resolves after month eighteen; on a post-settlement advance, after month thirty-six.
Not every funder has one. Some cap by elapsed time instead, which is a weaker promise because a longer case still exceeds it.
Check whether fees sit inside or outside the cap. Ours sit outside it and never grow, which is why a capped $2,500 advance repays $5,200 rather than $5,000.
About one in five of our pre-settlement files reaches the cap. A cap only means something if it costs the company money.
Related terms
- Compounding — Compounding is when charges are calculated on a balance that already includes previous charges, so the amount owed grows on itself over time.
- Simple (non-compounding) charge — A simple charge — what a lender would call simple interest — is calculated only on the original amount advanced, never on accumulated charges, so the balance does not grow on itself.
- Processing fee — A processing fee is a per-advance administrative charge — $100 at Get Lit Money — applied to every advance, added to the settlement repayment, and never growing over time.
Need the money rather than the definition?
Apply in two minutes, or call 813-798-5528 and we will explain any of this on the phone.