Conservative Lending: The Best Avenue for Your Clients
Individuals who suffer personal injuries caused by motor vehicle accidents can find themselves in financial distress if their injuries prevent them from generating income. The majority of your clients will not have to borrow money against their personal injury claim. However, every law firm handles a small group of clients whose financial situation is in dire straits. Our conservative lending practices can help these clients.
Our market research and experience show 7-10% of clients in a legal suit struggle financially. Some families struggle to the point where borrowing against their claim becomes necessary. If clients are in this position, it is crucial to direct them to resources that can provide assistance.
Empathize with Your Client’s Financial Situation
Clients need to explore all financial options available to them before considering a lawsuit settlement loan. For your clients who cannot wait financially until the settlement, borrowing conservatively can be a viable solution.
- Urge your clients to borrow for the right reasons. Child welfare, core living expenses, or risk of eviction/foreclosure are top priorities. The cost of a loan is low compared to the chaos eviction can bring to a family. Treatment financing for plaintiffs can also be considered.
- Stress conservative borrowing. Advising your client to borrow only for their necessities cannot be stressed enough. The loan and accumulated interest will be deducted from their settlement.
- Examine the benefit of fighting versus settling early. Managing clients’ expectations can be challenging. The cost of settling early for a lower settlement is often much higher than the cost of a loan that will allow the client to continue the claim.
What are the Benefits of Conservative Lending?
We understand you are concerned when a client owes so much that settling becomes difficult. Other financial lending companies fail to care about clients and lend too much, too often, and too early during the course of their claim. Borrowing too much can have a disastrous effect on a client. That is why conservative lending for a lawsuit settlement is so important.
We believe we do the best job in our industry managing these issues. Our core principle is to lend the appropriate amount, for the right reasons, and at the right time, helping clients with their most crucial financial needs. Our average loan size is under $3500. These principles manage risk and significantly reduce the amount owing at the time of settlement.