Depending on the case you are working on some clients may not be able to pay upfront fees for your service. If this is a case creating a payment plan may help ease the client's financial burden and make them work with you, this can be especially true for personal injury victims who may be financially unstable due to lost wages. Depending on how you work, a payment plan can be applied on a case-by-case basis or offered to every client.
Create a Payment Agreement in Writing
Write a payment agreement where every detail of the total fees and payment schedule are outlined. Having a detailed payment agreement will help both parties agree and understand when and how payments will be charged/paid. Ask your client to sign the agreement and you should sign it as well, this will hold both parties liable in case any one of them breaches this agreement.
What to Include in the Payment Agreement
- Payment schedule. Clearly state how many payments will be charged and the specific due date for each payment, include any time restrictions if necessary.
- State which payment method will and will not be accepted.
- Explain how you will handle payments that fall on a holiday or weekend.
- Include consequences for a missed or late payment or if the credit/debit card charged is declined.
Why Should You Consider Offering a Payment Plan
Offering a payment plan will help you attract and retain more clients, especially injury victims who may be hesitant to pursuing legal representation due to the financial burden. A payment plan will also protect your earnings by holding a client liable in the case of missed or declined payments.