Pre-Settlement Funding: 3 Reasons to Refer Your Client for a cash advance
It is clear that most Personal Injury lawyers do not want their clients to obtain cash advances on their settlements. Even though the money may be used to pay rent, utilities and necessary living expenses, lawyers often prefer the client to wait for their settlement.
Outlined below are list of reasons why a lawyer should refer his/her client to a reputable funding company even when the lawyer is against the client obtaining an advance.
1. Access to Funding.
When a lawyer chooses not to assist their client in obtaining funding, the client will almost always seek funding on their own. That process undoubtable include Google Searches that reveal hundreds of pre settlement funding companies. Many plaintiffs will apply with several different companies at the same time resulting in multiple information requests to the attorneys office. If the client is really in need of the funding, they will continue to push until they obtain funding from one of the companies. In the process, the plaintiff often times becomes frustrated that it took so long and there was very little cooperation from their lawyer. Although the lawyer did not want the client to obtain funding, they ultimately did and the process was far longer than it should have been and resulted in an potentially unhappy client. Since most lawyers rely on referrals from happy clients, this result is not good for the client or the lawyer.
2. Cost of Funding.
Now that the client has been approved for funding, it is most likely the case that they are going through a broker. 90% of all “funding companies” on the internet are simply brokers that feed funding companies at a high cost to the plaintiff seeking the funding. In most cases the cost of funding will be between 12%-20% higher when a client is approved through a broker instead of directly with a Pre Settlement Funding company. If the lawyer simply refers the client to a reputable company and a broker is not involved they will save their client hundreds and even thousands of dollars when the case settles.
Most plaintiffs have an immediate need to funding which includes keeping their electricity on, paying past due rent or simply feeding their family. A delay of just 1 or 2 days can cause late fees, evictions and a lowering of their credit score. Even when the attorney is personally against his/her client obtaining a cash advance, it is the clients situation that dictates whether a cash advance is appropriate, not the attorney’s views of funding services. If the lawyer refers his/her client to a funding company, that client will most likely pay a lot less in fees and the transaction will be far faster and more convenient for both the lawyer and the plaintiff.
Glofin, LLC was established in 2002 and has completed over 125,000 plaintiff fundings ranging in size from $250 to $100,000. Glofin is a direct pre settlement funding company, we are not a broker. We pride ourselves on being attorney friendly, as well as proving our clients with the highest level of service possible and industry low rates on cash advances.