How to Pitch a Settlement Advance to Your Client
A settlement advance could give your client access to the funding they need as early as possible, with minimal downsides – but some clients (and even law firms) may be less willing to go through the process of getting one. You may need to “pitch” the idea to them to help them understand how a settlement advance could benefit them in the long run – and make both of your lives easier in the process.
What’s the best way to pitch this concept to a reluctant client?
The most effective way to pitch a settlement advance to a client is to stress the benefits. Focus on the positive aspects of this financial move and explain how this decision is going to positively affect them.
- Immediate funding. This is the most important selling point. If your client is approved for a settlement advance, they’ll have access to immediate funding. They won’t have to wait for a settlement to come through; instead, they can start paying their bills and gain control over their financial situation.
- Confidence in the case. Your chances of winning a personal injury case vary dramatically based on a number of variables, including the nature of the injury, the extent of the injury, the parties involved, and the situation leading to the accident. A settlement advance provider generally won’t require repayment if the case is lost or if a settlement isn’t won. Accordingly, if your client is approved for an advance, they can rest assured that the case has a high likelihood of winning – or else they won’t have to pay the loan back.
- Reduced stress. Managing even basic daily expenses can be tough when you’re injured and/or out of a job. Getting a settlement advance can instantly relieve stress, making your client more comfortable and less worried on a daily basis.
- A clear path forward. In most cases, there’s a clear path forward to paying back the settlement advance. If you work with the right partner, they’ll owe a fixed fee associated with the loan, rather than a compounding interest rate. Once the settlement comes in, they can pay off the loan and fees, and move on with their life.
The Downsides and Risks
Obviously, you don’t want to scare your client away from the concept of settlement funding by overemphasizing the risks and downsides. But explaining the potential negatives can help your client get a fuller picture of the situation – and build their trust in you, since you’re not hiding anything.
- Interest rates. Compounding interest rates can leave a borrower with more debt than they originally borrowed. This is a legitimate concern. However, in an ideal situation, you’ll choose a settlement advance provider that doesn’t charge any interest rate. Instead, they may charge a fixed fee.
- Losses. What happens if the borrower doesn’t win a settlement? In most cases, your client won’t have to pay anything at all. Verify this before promising it.
- Fees. Your client will likely have to pay a fee for their settlement advance, especially if the loan provider isn’t charging interest. Clients may be reluctant to pay this additional money; however, it’s often worth the cost to get immediate access to funding.
Like a salesperson, you should be anticipating objections before you make a pitch (and during your pitch). Even though settlement advances can help most clients who are waiting for their settlement to come through, there are some reasonable objections that could prevent a person from following through. For example, they may not want to pay the extra fees, or they may be nervous about working with a funding provider they’ve never heard of before.
Your job isn’t necessarily to forcefully overcome these objections; in fact, arguing with your client may push them further away from the concept. However, you should have a plan to acknowledge and address them. Explain the objections you find to be the most reasonable and use specific facts to disprove misconceptions.
Here are some other tips for pitching a settlement advance to your clients:
- Make it a conversation. The term “pitch” makes it seem like you’ll be explaining the concept to your clients as a monologue. But it’s much better if you turn it into a conversation. Explain the basics, then give your client time to ask questions and engage with you. They’ll be much more open to hearing what you have to say this way.
- Listen. Take the time to listen to what your client is saying. Figure out what they understand and what they don’t understand. Learn about their main objections. The more you comprehend, the better you can serve them.
- Don’t push too hard. You don’t have much riding on this decision, so try not to push too hard. If you get too aggressive or pushy, it’s going to turn your clients off from the concept, even if they could significantly benefit from the financial move.
- Emphasize the power of choice. Remind your clients that this is entirely their decision. Make it clear that you don’t stand to benefit from this decision, other than serving them better. When your client feels empowered to make the choice for themselves, they’ll be more likely to seriously consider the option.
- Provide links to further reading. Some clients will walk away from the conversation feeling uncertain – and possibly confused. Provide them with some resources and links to further reading so they can read more about settlement advances on their own.
- Have a provider in mind. Have a settlement advance provider in mind. Working with the right provider can make your life drastically easier – and give your clients a much better experience with the loan.
- Have a dollar amount in mind. Finally, have a dollar amount in mind that is reasonable for your client to ask for. Providing your client with direction will save heartache in the end when they get approved for a lesser amount than they are asking for. Clients don’t always know the amount their case is worth or what is a reasonable ask from a settlement funding company. Providing your clients with an amount to ask for can give them confidence and a better experience with the process.
It’s much easier to pitch a settlement advance to a reluctant client if you’re absolutely confident in your settlement advance partner of choice. That’s why Capital Now Funding exists – to help lawyers get the best funding options for their clients. Contact us today to learn more and start working with us!