Savings using Accident Victims Funding versus the competitor shown in this example: $4,296.
This example illustrates the very costly effect of "compound" interest (interest on top of interest). Most of our competitors charge compound interest. Accident Victims Funding charges "simple" interest. This is a comparative example of a $10,000 cash advance over a one-year period.
Competitor Rates
$250 application fee, plus $300 origination fee, plus 5% interest compounded monthly. The additional fees charged in the beginning also generate compound interest.
Accident Victims Funding Rates
No fees, 39% "simple" interest, plus $200 processing fee paid at end.
| Calculation of competitor's fees. Initial Investment ($10,000) plus fees ($250 + $300) = $10,550 |
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| Principle | Interest | End of Month... |
| $11,077 | $553 | 1 |
| $11,631 | $581 | 2 |
| $12,212 | $610 | 3 |
| $12,823 | $641 | 4 |
| $14,464 | $673 | 5 |
| $14,138 | $706 | 6 |
| $14,844 | $742 | 7 |
| $15,587 | $779 | 8 |
| $16,366 | $818 | 9 |
| $17,184 | $859 | 10 |
| $18,044 | $902 | 11 |
| $18,946 | total | 12 |
| $18,946 | total payback to competitor | |
| - $10,550 | original cash advance and required fees | |
| $8,396 total cost of investment through competitor | ||
| Calculation of same cash advance through Accident Victims Funding. | |
| $10,200 | original investment (initial investment of $10,000 plus $200 processing fee) |
| X 39% | 39% simple interest, one year |
| $4,100 | total cost of same investment through Accident Victims Funding |
| $4,296 net savings using Accident Victims Funding versus competitor | |
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