For clients who can’t afford the retainer and don’t qualify for financing. What are the pros and cons of doing in house payment plans? Thoughts below.

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I serve as outside General Counsel to solo and small firms, a client that balks at a reasonable retainer fee is going to be a problem down the road. While it depends on your practice area, community, etc. - I’d avoid offering financing (from a risk management standpoint). It can also be a little tricky ethically to work within Rule 1.8. From the actual business standpoint, I think your current approach of using a third-party is the safest way to play it. Feel free to DM if youd like to chat further.

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We use a third party who is in charge of billing’s and collections. So I’m not too worried about chasing clients. My thought is the retainer paid over 12 months still increases my yearly income the same as a paid in full retainer just paid over the longer period. So as long as we can budget I’d rather not lose the lead.

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We don’t offer in-house financing because of the difficulty (both from a time perspective and a potential public relations perspective) of collecting fees after work is done. But a third party collection arrangement that the client knows about up-front may be a decent workaround. We do domestic and probate, so I would be concerned more about domestic clients who were not satisfied with the outcome trying to avoid paying after the matter was completed and then leaving a bad review online if they were still being hounded to pay (bad outcomes on a retainer usually go away pretty quickly after an order comes out). If it’s not you or your staff trying to get payment, there may be less risk of that negative outcome for you and you’re right that you could potentially get more clients and more fees that way.

It always ends up being an issue down the line

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