Can Clients Get an Advance on Their Settlement?
Plaintiffs in personal injury cases are often eager to get their settlement so they can begin paying off their debts and returning to a normal life. But how can you get them a settlement faster?
In this guide, we’ll examine a few important strategies you can use to expedite the settlement process without jeopardizing the amount of money you get for your clients. More importantly, we’ll explain how settlement advances work – and how your clients can get access to their settlement money almost immediately.
Why Settlements Are So Frustrating for Clients
Waiting for a settlement is universally frustrating. Your clients likely feel helpless, tired, and overwhelmed by their responsibilities, both in and out of the legal setting. If they’ve been personally injured, they could still be in recovery, dealing with chronic pain and the stress of ongoing medical appointments. If they’re out of work, their finances may be heavily restricted.
On top of all that personal stress, your client is unfamiliar with the legal world. This case is probably very new and unfamiliar to them. They have no idea how the settlement is going to go (even if you’ve tried to explain it to them), and they have no idea how much money they’re going to get or when they’re going to get it. Most clients simply want the situation to be resolved as quickly and painlessly as possible – which is where you come in.
Can You Help Your Client Get Their Settlement Faster?
Can you take measures to help your clients get their settlement faster?
The short answer is yes.
- Doing sufficient research. Take the discovery phase seriously and do as much proactive research as possible. The more you know about the case, the better you’ll be able to negotiate (and argue the case in court). If the defense is unprepared, you might be able to reach an agreement faster this way.
- Calling on additional resources. Don’t try to do all the work yourself if you have a heavy caseload or if you feel overwhelmed. Delegate or partner up with other people to distribute the work more reasonably.
- Managing deadlines. Keep a tight schedule so you can stay on top of deadlines and hold your client accountable for their deadlines as well.
- Applying pressure. When negotiating with the defense, make sure to apply pressure to get them to act quickly. Most defense attorneys and insurance companies will intentionally delay the process as much as they can; don’t let them.
- Expediting the payment process on your end. You may also be able to hasten the payment process on your end. When you receive the settlement money, take your fees and redistribute the remaining funds as quickly as possible.
Of course, there’s only so much you can do. Even the best and most attentive lawyer is going to run into roadblocks when trying to expedite the settlement process. Thankfully, a settlement advance can provide a better shortcut.
How a Settlement Advance Works
How does a settlement advance work?
In some ways, it functions like a traditional advance. Your client will submit an application to a settlement advance provider, and if approved, they’ll receive a portion of the settlement they’re due to receive in the future. When the settlement hits their bank account, they’ll need to pay back the loan, plus any fees. If the loan is non-recourse, and the settlement doesn’t ever arrive, they’ll owe nothing.
It’s a way of getting your clients access to money much faster than normal, and it has a number of benefits for both of you:
- Lower client stress. Immediately, your clients will be less stressed throughout the legal process. The case will no longer feel uncertain and they’ll no longer have pressing financial concerns.
- Client assurance and compliance. In line with this, your clients will have a renewed sense of confidence in your ability to win a sizable settlement. They’ll feel assured that they’re in good hands and will likely be more compliant with your requests as you do more research and due diligence.
- Better reviews and testimonials. Lawyers and law firms are always looking for ways to get better reviews – and a settlement advance can help you do it. If you refer your client to a reliable settlement advance company, and they get an instant lump sum of funding, they’re going to feel much better about working with you.
Tips for Helping Clients Get a Settlement Advance
So how can you help your clients get a settlement advance the right way?
- Educate them on the process. Make sure your client thoroughly understands what a settlement advance is and how the process is going to work. You don’t want them to be surprised when they find out they have to pay the loan back.
- Stress the importance of fiscal responsibility. Getting a settlement advance isn’t going to make all their financial problems go away. If they spend the money recklessly, or if they don’t have a strict budget in place, they could put themselves in financial hardship long before the settlement itself arrives. You don’t have to be a financial advisor to your client, but you should caution them to exercise fiscal responsibility.
- Be wary of scams and high interest rates. Before recommending any settlement advance, make sure you know the risks of scams and high interest rates. The settlement advance industry is unfortunately plagued with a handful of predatory lenders; always do your research and make sure you choose a settlement advance provider with a fixed fee, non-recourse lending, and reasonable terms and conditions.
It could be months, or even years before your client gets the settlement they’ve been eagerly anticipating. But a settlement advance could give them financial relief almost instantly. Have a conversation with us here at Capital Now Funding; we’ll explain all our services and how they work, so you can feel comfortable connecting with us and helping us serve your clients.