For many attorneys, it can be challenging to navigate telling their clients that the money they need to meet their day-to-day goals will be long off. You may be wondering when to recommend pre-settlement loans to law firm clients.
While not all clients need or benefit from them, pre-settlement lawsuit loans can provide law firm clients with a much-needed resource to meet their financial needs now while they wait. If your client is struggling to keep up with bills while waiting for a settlement, they could be a good candidate for a pre–settlement loan.
How Pre-Settlement Funding Supports Client Needs
It is complex to know how long it may take for any personal injury case to settle, especially in courts that continue to delay and push cases later. While a simple settlement from the insurance company could take weeks, most cases are much longer processes. Frankly, they are a financially challenging situation for victims when they extend beyond more than a few months.
As an attorney, it is often your job to shoulder this common question: How long will it take to receive a settlement? At the same time, attorneys often feel the need to do all they can to provide relief to their clients. This is where pre-settlement funding can offer some help.
With pre-settlement funding, your client obtains an advance on the compensation they are likely to receive in their settlement, but the difference is they do not have to wait for it. Instead, they can receive those funds in as little as 24 hours.
This affords clients the ability to obtain financial support when they likely need it the most, especially if learning when to recommend pre-settlement loans to law firm clients.
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Insights on When to Recommend Pre-Settlement Loans
There is a cost to pre-settlement loans, funded out of a percentage of fees that directly reduces the settlement amount. Considering that, it is not appropriate to recommend the use of pre-settlement loans in all cases, especially when there is no demonstrated need.
However, in other situations, there are numerous indications that such steps could be beneficial:
- Inability to work. For a client unable to return to work but without financial means to meet obligations like rent or mortgage payments, the use of pre-settlement funding makes financial sense.
- Significant financial loss could worsen. If a client’s financial situation worsens due to ongoing financial struggle, this could result in foreclosure or an inability to meet other financial needs. Providing insight into pre-settlement funding could be sensible.
- Significant adaptations to life. Modifications to homes may be critically important in catastrophic cases. If a person cannot afford modifications to their home and faces limitations to the quality of life or even length of life, tapping into those financial resources now could be critical.
As an attorney, it is not always possible to provide enough support fast enough, no matter how desirable this is. Yet, providing your clients with a potential solution can be life-changing. The key is to provide the information in an educational manner and as an option, not a requirement.
Key Details to Provide Clients About Pre-Settlement Funding
Prior to offering guidance on the use of pre-settlement funds, both lawyers and clients need to know the benefits and limitations of these programs. At Silver Dollar Financial, we aim to educate our borrowers about all aspects of these loan programs to ensure they fully understand not only their options but the benefits that come from using those opportunities. Consider some of the most important details to share:
- Available nearly immediately. With formal applications taking as little as 24 hours to fund, clients can receive money very quickly.
- No credit check or income verification. Our pre-settlement funds require only an attorney’s verification of the strength of the case and the likely compensation to be paid to the victim. There is no employment requirement, no credit score requirement, and no financial documentation to share, so you do not have to worry about Credit Checks: What are credit inquiries and how do they affect your FICO® Score?
- There are no monthly payments. This is also critically important to those who are unable to meet financial needs now. The consumer does not make any payment on the funds until they win their case. Then, the fund is paid back in full. This makes pre-settlement funding much different than traditional personal loans.
- There is no risk of repayment if the case is lost. In situations where the client does not receive a settlement, no repayment of the funds is required. There is no direct financial risk to the consumer.
- Funds are versatile. Clients can use them for any need they have. They are not asked why they need those funds or how they will be used, and there is no monitoring of use in any way.
For all of these reasons, clients who need access to money now can find potential benefits in pre-settlement funding. It is important to note that these funds are not given without careful consideration. Application and verification of the client’s case and the strength of that case are necessary first steps.
Click to contact the Silver Dollar Financial Team today or Call +1(844)871-0628
How Much Clients Can Borrow
The amount of money available for clients to tap into through pre-settlement funding from Silver Dollar Financial is directly related to the value and expected payment from their case.
Typically, this ranges from 10% to 20% of the settlement expected, usually between $1,000 and $100,000 as a result. When an applicant applies for pre-settlement funding, they are directly given access to:
- The amount they can borrow
- The cost of borrowing those funds
- When and how repayment is made
- Stipulations on access to funds
- What information is necessary, and how attorneys can play a role in this decision
Seek out guidance from our team. By providing a way for your clients to meet their financial goals, they gain peace of mind. They may be more readily willing to push for more robust claims and funds if they have money in their hands now, so be sure to direct them to our FAQs for more information.
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Learn More from Our Team Today
At Silver Dollar Financial, we provide extensive education and insight to our clients for all of their potential needs related to pre-settlement funding. If you are ready to offer this recommendation to your clients, we can offer you insight.
Contact us now to learn more about when to recommend pre-settlement loans to law firm clients.
Call or text +1(844)871-0628 or Apply Now for Pre-Settlement Funding