Funding agreement
A funding agreement is the contract between a claimant and a funding company setting out the amount advanced, the charges, the repayment schedule and the lien against the case proceeds.
With us, you are the only one who signs it. The agreement includes your written instruction to your attorney to pay the lien from the settlement, and the firm receives a copy. That is not a guarantee of repayment by the firm and creates no liability for it. Some funders also ask the attorney to sign an acknowledgment.
A payoff table should be in the agreement itself. If it does not contain one, ask why before signing. Ours also gives you five business days after signing to cancel without penalty by returning the advance.
Read the sections on non-recourse, compounding and the cap specifically. Those three determine almost everything about what the advance will cost you.
Related terms
- Lien — A lien is a legal claim on settlement proceeds that must be satisfied out of the recovery before the claimant receives their share.
- Non-recourse — Non-recourse means an advance can be repaid only from a specific source — here, the proceeds of your case — and the person who received the money is not personally liable if that source produces nothing.
- Letter of protection — A letter of protection is a written undertaking from an attorney to a medical provider promising payment from the eventual settlement, allowing treatment to proceed without payment at the 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.