Your client may be in a position to win a large settlement for their personal injury case. Hopefully, in a short amount of time, they will get enough money to pay for their medical treatment, their ongoing health needs, daily living expenses and even compensation for their pain and suffering.  Unfortunately as you are all too aware, sometimes this process takes longer than your client can wait for money.

The process for getting a settlement is long and stressful, so what are your clients supposed to do in the meantime? One answer is to pursue a lawsuit advance, otherwise known as a settlement loan or pre-settlement funding, which can give your client instant access to the money they’re going to be owed. But there are, unfortunately, several obstacles standing in the way between your clients and the lawsuit advance they sorely need.

The Power of a Lawsuit Advance

Lawsuit advances have several advantages, including:

• Instant financial relief. For starters, it provides instant financial relief to a client who may desperately need it. Your client is facing mounting medical bills, accumulating bills for personal expenses, and potentially, an inability to work. With a lawsuit advance in hand, they can cover their expenses and focus on what really matters – their recovery.
• Increased optimism and confidence. Lawsuit advance providers typically only give advances to the most promising cases. If your client receives an advance from a thorough and discerning settlement advance organization, they’ll feel much more confident and optimistic about the future of their case.
• Lower stress. Clients who receive lawsuit advances tend to carry less stress since finance is such a major source in life. That means they’ll be much more open to communication – and they’ll enjoy better health outcomes as well.
• A better overall experience. Clients with lawsuit advances also tend to see their experience in the legal system as “better” overall. They’ll be more likely to positively review your law firm and recommend your services to people they know. Ultimately, that means more client referrals and a better reputation in the community.

The Obstacles in Your Way

So what are the obstacles that stand in the way between you and these benefits of lawsuit loans?

1. Interest rate woes. Compound interest can be a financial killer. Most lawsuit advance providers charge an interest rate on the loans they provide to their clients. While this isn’t always a deal breaker, it can introduce additional financial stress on already-struggling borrowers. If the interest rate is high enough, it could cause your client’s debt to grow rapidly, ultimately leaving them in worse condition than they were before the loan. Fortunately, Capital Now Funding only charges a one time flat fee instead of a recurring interest rate.  This means your client's payoff is fixed for the life of the case.

2. Settlement odds. Providers want their loans to be paid back reliably, so they tend to only fund cases they think have a high chance of winning a sizable settlement. If the case is uncertain, or if the provider can’t be persuaded, it might be tough to get the advance you need.

3. Inability to repay. Settlement advance providers shouldn't require repayment if no settlement is won, but if the case doesn't have enough value or the client takes out too much in funding, the ability to repay could be put in jeopardy. If your client is concerned about their ability to repay the loan, in any way, they may be persuaded against getting it.

4. Fears and misconceptions. Unfortunately, many clients avoid lawsuit advances (and many lawyers avoid recommending them) due to the fear of working with companies that take advantage of their clients. They may feel like there’s a hidden “catch” or fail to fully understand how the process works.  It is important to have trust in the funding company you work with and that is something that Capital Now Funding takes very seriously.

5. The application process. Applying for a lawsuit advance is generally easy and straightforward, but many clients still avoid taking this step. Without a viable application, the advance can’t move forward.

6. Communication and collaboration. Poor communication or collaboration can ruin an otherwise promising arrangement. If your lawsuit advance provider isn’t honest or isn’t transparent, it can make your client justifiably concerned – and reluctant to move forward with any loan.

7. Finding the right provider. There’s no shortage of lawsuit advance providers to choose from, each with their own requirements, pros, and cons, so choosing the “right” provider to recommend can be difficult.  This being said, there is only one provider that never charges recurring interest - and that is Capital Now Funding.

Keys to Getting the Right Lawsuit Advance

If you want to overcome these obstacles and find the “right” lawsuit advance for your clients, it’s important to do the following:

• Keep an open mind. Keep an open mind about the possibilities in front of you. Too many lawyers end up stuck with the impression that lawsuit advances are all unethical or predatory, or that they’re not worth researching.
• Get to know your clients and cases. The better you know your clients and the cases they’re dealing with, the more personalized and thoughtful your recommendations are going to be. Not everyone needs lawsuit funding – and some will be more open to the idea than others.
• Talk openly and honestly. Strive for open and honest communication. Tell your clients about both the pros and cons of lawsuit advances. Talk to lawsuit advance providers about their terms and conditions.
• Shop around. There are many different lawsuit advance providers out there, and most of them differ on rates, the application process, and the terms and conditions of their advances. Make sure you spend time shopping around for different options (and comparing apples to apples).
• Scrutinize the details. Always take the extra time to scrutinize the details before recommending a lawsuit advance provider to a client. Are the terms and conditions for the loan reasonable? Is this something that will genuinely benefit your clients?

If you can follow these steps, you’ll be able to recommend the best lawsuit advances for the clients who need them most – and steer clear of them for clients who don’t need them at all. While not every client will want (or even qualify for) a lawsuit advance, it’s a lifesaver for many. If you’re interested in learning more about Capital Now Funding and our approach to lawsuit loans, contact us today!