Asking friends and family for money can be, well, fraught. Many friends and family are skeptical that their “loan” will ever get paid back. Furthermore, lending money to someone you know well can cause animosity or resentment or both while the loan is outstanding, and even more if it never gets paid back.
Further, asking for the loan in the first place may be met with skepticism. We’ve heard from people after an accident that when they tell their friends they’re “going to get $50,000 from their case in 6 months” those friends are not sure how much of that to believe.
At Mighty, we uniquely understand these challenges, but also how powerful it is for people to have their community behind them, especially at such an important time as after an accident. Friends and family are most special in hard times, and for many people, there is no harder time than after an accident.
At Mighty we also recognize how important it is for people to have money after their accident to help bridge the gap between the time they get injured, and when their case settles which can take months or even years. While many people are able to get advances on their settlement, we’ve written about the complicated tradeoffs people have to make to decide whether the high interest rate of the advances is worth the benefit.
With these considerations in mind, Mighty is the first company to offer its clients the option to obtain interest-free friends and family loans that Mighty will facilitate at no cost to the client (or the friends and family). Here’s how it works:
- If our clients have friends and family willing to lend them money, Mighty will talk to those friends and family about their case (of course, with client permission).
- If our clients’ friends and family are interested in giving interest free loans, we will provide standard interest-free loan paperwork, and help gather signatures.
- As part of the loans, the client has to agree to allow us to pay the friends-and-family out of the settlement, giving their friends and family additional security and helping them avoid having to ask our client for the money back in the future.
- Throughout the case, Mighty will provide updates to the client’s friends and family who provided the loan.
- When the case settles, Mighty will facilitate payment to the friends and family out of the settlement before the client gets paid the remaining amount
While there’s a considerable amount of extra work Mighty has to do in order to facilitate this solution, it’s invaluable to our clients’ to have money when they need it, and have friends and family who can feel comfortable supporting them.
Mighty is using its data-driven, nerdy know-how to help people after an accident. Mighty Law lawyers charge lower rates and commit to a Code of Conduct that forbids behaviors typical among billboard injury attorneys, such as quid pro quos for referring people to their doctor friends. Plus, you can work with a Mighty Law lawyer at no cost for up to 60 days if no lawsuit or demand letter is filed.
Written ByJosh Schwadron
Chief Executive Officer
About the author
Joshua is a lawyer and tech entrepreneur who speaks and writes frequently on the civil justice system. Previously, Joshua founded Betterfly, a VC-backed marketplace that reimagined how consumers find local services by connecting them to individuals rather than companies. Betterfly was acquired by Takelessons in 2014. Joshua holds a JD from Emory University, and a BA in Economics and MA in Accounting from the University of Michigan.
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