When clients are going through personal injury litigation, it’s not uncommon for them to run into financial hardships. As they are often in close contact with their lawyer during this time, they may turn to you for solace and help. When this happens, some lawyers may personally lend money to clients to pay the mortgage, car bill, or rent. Although you are assisting them during their time of need, this action may prove to be problematic further in the litigation process.
Lending Money Ties Lawyers to Clients
Many lawyers hold the opinion that lending money to clients is problematic because it puts you in a difficult position when the settlement finally comes in. If money were to be borrowed, the lawyer would then take a personal interest in the case. In doing so, they could put their obligation of providing objective advice at risk.
When a client owes a personal debt to their legal counsel, their case is looked at differently by their lawyer. A higher settlement is now wanted by the client so they can successfully pay back all their debt. This interest that stretches beyond the bounds of a normal retainer may not have the client’s interests in mind.
Alternatives to Lending Clients Money
If one of your clients approaches you for financial assistance, there are ways to help them without getting personally involved. You can provide your client with information about companies that offer pre-settlement loans and ongoing monthly support. These companies can immediately address the financial needs of your client until their settlement arrives.
Rhino Legal Finance is the best lending company to help your personal injury clients get back on their feet. We help clients all over Canada with personal injury financing and immediate lump sum pre-settlement loans. We can get them funds in as little as four hours if need be.
Our application is fast and easy for clients to fill out. We don’t require proof of employment or review past credit history when determining the suitability for a loan. What’s even more advantageous for your client is that they do not have to make monthly payments while their case is still being determined. No re-payment is required until their claim is resolved. Our flexible and affordable financing options will keep your clients going through the settlement process.
It may be hard not to lend money to your clients. Their situation is difficult, and you want to help; that’s understandable. However, you should help them in the right way. Direct them to a lending company like Rhino Legal Finance who can ease their financial burdens.