The Difference Between “Compounding Pricing” and “Flat Pricing”
Legal-Bay never charges compounding interest, a tactic used by many legal funding companies, which will see a substantial rise of your payback cost should your case start to drag more than 6 months, which most cases do. Legal-Bay’s pricing model ensures that you will get fair pricing and that regardless of the time that your case takes to settle, your usage rate, or interest rate (as client’s refer to it) will remain fixed or flat. Whereas compounding pricing means that as your balance owed goes up, you are charged “interest” based on the new figure you owe; not the original balance you took. This is why it is called a Compounding Interest model.
Below is a simple calculation of what a “Flat Pricing” or “Simple Interest” $10K contract with Legal-Bay will look like after 3 years; and what the typical competitor pricing will be after same 3 year period. As you can see, the Compounding Pricing model will cost a client an additional $8100 or an 81% increase from what the Legal-Bay payback would be.
And after 4 or 5 years these numbers will only soar considerably more. When choosing the best lawsuit loan company, always choose flat pricing. Always choose Legal-Bay as the most transparent and fair contract in the litigation funding industry. Simple interest models are the cheapest in the Pre Settlement Funding Industry.
LEGAL-BAY 3% MONTHLY FLAT PRICING CONTRACT
1. Total Purchase Price $10,000.00
2. Annual Percentage Fee – 36%
00 to 06 Months $11,800.00
06 to 12 Months $13,600.00
12 to 18 Months $15,400.00
18 to 24 Months $17,200.00
24 to 30 Months $19,000.00
30 to 36 Months $20,800.00
INDUSTRY COMPETITOR 3% MONTHLY COMPOUNDING CONTRACT
1. Total Purchase Price $10,000.00
2. Annual Percentage Fee – 36%
00 to 06 Months $11,940.52
06 to 12 Months $14,257.61
12 to 18 Months $17,024.33
18 to 24 Months $20,327.94
24 to 30 Months $24,272.62
30 to 36 Months $28,982.78
The 30 to 36 Months difference is pricing is $8100 or 81% more out of your pocket at settlement.
Disclaimer: The above model does NOT include fees and assumes 36% pricing which is a preferred funding rate. NOT EVERY CASE CAN QUAILIFY FOR THIS RATE; HOWEVER LEGAL-BAY WILL NEVER CHARGE YOU COMPOUNDING INTEREST EVEN IF YOUR RATE ENDS UP BEING SLIGHTLY HIGHER. The model is just an illustration based on similar pricing models; Legal-Bay can NOT quote pricing until we do a full review of your case. Legal-Bay’s products are not loans or lawsuit loans, so any reference to lawsuit loan or “interest” is only being done for easier explanation for consumers.