By offering in-house financing to your clients, you can boost client loyalty and confidence. Data collected shows that the average law firm that offers client financing programs increase revenue 15 to 50 percent, and over 90 percent of customers who use attorney client financing said they plan to do so again if need be and refer their friends as a result.
You live this everyday in your law firm! Over 60 percent of clients typically aren’t able to qualify for a conventional credit card, how are they going to pay for unexpected legal fees? Unless you offer customers financing options in-house, they are walking out the door of your law firm without making any decision to move forward with their case.
A lot of law firms that want to offer financing to their clients start out by thinking, “Why can’t I just do this myself?” You can do it yourself, but there are three main reasons to hire a financing firm that specializes in Attorney Client Financing:
- Using your own money to provide credit to customers ties up your law firms’ cash flow.
- Lending to clients on your own can get complicated. It takes time to keep track of all your clients’ transactions and to follow up with customers who don’t pay on time. This can be a full time job in and of itself.
- A business that provides consumer credit needs to comply with multiple laws and regulations. You need to comply with these laws even if you use a third party service, but hiring it out makes things easier.
Using a financing company frees up your time and money for what you do best: running a great law firm
If your clients don’t know that you’re offering attorney client financing, they won’t be able to take advantage of it, and you’ll lose out. Research shows that 68 percent of decisions to hire a lawyer are unplanned. In addition, you should put banners on your website if you’re offering Attorney Client Financing.
Your employees are your biggest partner in promoting attorney client financing. Your employees should be trained in how to initiate the topic with clients, how to submit an application for approval, and how to answer customer questions and concerns. When choosing a company to work with for customer financing, make sure that the application process is convenient both for your customers and employees.
Your ultimate goal is to show the client that your retainer could possibly fit their budget. In addition to quoting the full price of your retainer, such as $5,000, explain to your client the lowest installment payment possible (e.g. monthly as low as $130/month). That way, your clients can see just how affordable the financing can be.
Law firms sometimes see their sales double or even triple after offering customer financing
What law firm doesn’t want to get paid upfront!
For more information on Attorney Client Financing programs, Linda Donnelly can answer any questions and explain options for your law firm. Contact Linda at 855-943-8736 ext. 6.