Personal Injury Attorneys: Speak to Your Clients About Plaintiff Cash Advances

Posted on May 29, 2015 by Dan Christensen

Plaintiff Advances Provide Financial Relief While Cases Are Pending

Understandably, victims of personal injury want to know when they will receive the money from a verdict or settlement of their case. Injury attorneys must explain to their clients that resolution of these cases often takes years, especially when dealing with complex cases, significant damages or cases with multiple parties.

Some clients, however, are facing mounting personal expenses and do not have the luxury of waiting. They may have a destroyed car, thousands of dollars in medical bills and several months of missed work. Should the lawyer just accept a substandard settlement to resolve the case quickly, or should the lawyer and client hold out for a more substantial award? One potential solution that can help the client cover short-term costs while preserving the integrity of their case is for them to apply for a settlement advance.

Why Should My Client Get a Plaintiff Advance?

An advance will give your client the short-term relief he or she needs to stay afloat financially while you are either negotiating a settlement or litigating in court. Here’s how it works:

  1. Your client submits an application for a cash advance to a legal funding company.
  2. The company responds to the application and provides funds, usually within 48 hours.
  3. The funds are advanced to the client.
  4. When the case resolves, the advance is repaid out of the proceeds.
  5. If your client does not receive a verdict or settlement in his or her favor, then there is no obligation to repay the advance.

Is a Plaintiff Advance the Best Option for My Client?

Compared to bank loans, cash advances offer many benefits to your clients:

  • No obligation to repay the advance if the case is unsuccessful
  • No invasive credit check
  • No effect on their credit scores
  • No effect on other loans they may already be paying off
  • Fast turn-around and approval time
  • No restrictions on how your client spends the money

As long as your client has an active case pending and you are the attorney of record, he or she can apply for an advance.

Keep in mind that cash advances are not the best solution for everyone. They are intended for short-term relief, so if your client needs more long-term assistance, you might suggest other avenues of financial assistance. Since these advances are no-risk for plaintiffs (the risk is borne by us solely as the lender), the interest payment may discourage some clients from seeking this type of assistance. Make sure your client is not digging him or herself into a financial hole by taking out a lawsuit advance. We do our part by never over-advancing funding.

For more information about how a settlement advance can help your client, contact Beacon Legal Funding. We are a legal advance company that focuses on helping attorneys and their clients pay the bills while awaiting the outcome of a case.



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