Introducing Pay Later, a Legal Fee Lending Solution
How can an attorney increase their overall collection rate, decrease outstanding accounts receivable, and substantially reduce time spent on billing?
By offering clients a legal fee lending solution.
These payment options can be a game-changer for your firm, and adding it as one of your accepted payment methods is about to get even easier with Pay Later, a new offering from LawPay.
What is Pay Later?
Pay Later is a legal fee lending solution exclusively available through LawPay. With Pay Later, your clients have the ability to pay for legal services in installments while your firm still receives 100 percent of the invoiced amount upfront.
Pay Later is the next generation of payment solutions for the legal industry and was developed in response to the growing demand for fee financing options.
The Rising Popularity of Payment Plans
Statistics show that, when given a choice, consumers are increasingly opting for payment plans. Between July 2020 and March 2021, the use of online payment plans grew by nearly 50 percent.
Cardify, a market research firm, found younger adults in particular are frequently choosing online payment plans even when they have the funds to cover the total cost of a purchase. This is likely influenced by the demographic’s growing aversion to credit cards—in fact, about one in four Millennials don’t have a credit card.
Pay Later enables you to easily accommodate these evolving payment preferences and provide a flexible, client-focused payment experience.
How Your Firm Benefits from Pay Later
In addition to expanding your available payment options and making your law firm more attractive to prospective clients, Pay Later improves the consistency and reliability of your cash flow.
One of the most common reasons lawyers hesitate to let clients pay over time is that traditional payment plans can have a higher incidence of late and non-payments. The advantage of Pay Later is that it helps mitigate the risk of both. Your firm receives the full requested amount upfront, and clients still have the opportunity to split an invoice into multiple payments.
The other major benefit of Pay Later is that it increases how quickly you collect your full fees. When it comes to traditional payment plans, giving clients the option to make multiple smaller payments over time means, by definition, you receive smaller deposits. Allowing clients to use Pay Later, on the other hand, means you can secure your total invoiced amount at the start of the engagement.
What Pay Later Means for Your Clients
Rather than being put in the challenging position of having to find a way to pay one large lump sum, Pay Later enables your clients to secure legal representation and still allocate funds for other expenses. For example, Pay Later is a great option for a solo business owner who is in need of legal services but also has to keep money in reserves for unexpected costs.
Pay Later also opens up access to legal representation to people who want an alternative to credit cards. These individuals may not currently have a credit card and would prefer not to apply for one. Additionally, Pay Later is an attractive option for prospective clients who do have a credit card but would rather not charge a large amount.
What makes using Pay Later to finance legal fees especially beneficial is that the client’s monthly payments remain the same during the entire repayment period, which makes it easier for them to budget and gives them greater control over their finances.
The Latest from the Legal Payments Leaders
For nearly two decades, LawPay has been leading the industry with innovative payment solutions developed specifically to support legal professionals.
Our proprietary technology seamlessly integrates with more than 60 of the most popular legal tech solutions—more than any other legal payment software. LawPay is also the only payment solution to be vetted and recommended by all 50 state bars and 70+ local and specialty bars and the only payment solution offered through the ABA Advantage program.
To get started with LawPay and Pay Later, visit our signup page.