How to Best Manage Funding Requests

It is not always possible for your clients to wait to receive their settlement money, especially if they are out of work or behind on bills because of their accident. As a result, often their only solution is to seek a loan from a pre-settlement funding company to help bridge the gap.

In a financially dire situation, clients will often look for the funding company that can provide them the most money the fastest, regardless of the fees and interest the funding company may charge.  To make matters worse, many law firms take a hands–off approach with pre-settlement funding which leaves their clients on their own to figure out how much money to ask for and what funding company to use. 

At Capital Now Funding, we recommend attorneys and law firms be actively involved in the funding process. Being involved prevents your client from adding unnecessary and excessive liens to the case that could put the future settlement in jeopardy. Additionally, we recommend you talk with your client about what is a reasonable amount of money to request. 

Here are the main benefits of working with your client to determine funding requests:

• Left alone, your client can end up with a company that has soaring interest rates that will potentially wipe out their portion of the settlement and cause issues with getting the case settled. We suggest having a pre-approved list of accredited funding companies that you can provide your client when the conversation takes place. At a minimum, this can help steer your client in the right direction.
• Talking with your clients about the amount of funding that is appropriate to request can build healthy expectations for the settlement amount they will receive when the case closes, and it will help prevent over-funding.
• Keep the funding value to case value low. Somewhere in the 10% – 20% range is a good target, at least in the early stage of the case.  Do not let a client get too much money early and then not be satisfied later because their settlement money is all going to pay off liens.

At Capital Now Funding, we want to partner with you to help achieve the best financial results for both you and your clients.  Don’t let your clients work with a funding company that charges excessive fees and escalating interest rates.  Everything we do is for a fixed fee and we never charge interest.  Regardless of the duration of the case, your client’s payoff will never increase with Capital Now Funding.