Clients Have Very Short Memories.

One of the reason that most funders (with brains) like to keep advances between 10-20% of the total value of the case is to avoid clients losing the incentive to settle because there is not much money left on "the back end " for them after disbursements, attorney's fees and repayment of the funding lien. Clients' knee-jerk reaction is to roll the dice and try the case. If they hit big great, if there's a low number or defense verdict, the client says "well only the attorney and funder got screwed".
Here's a typical scenario. Client gets a $5000 advance. There is a settlement offer of $15,000.
Breakdown would be as follows;
1. $15,000
2. Expenses-$500
3. Net Recovery-$14,500
4. Attorney's Fees- $4,833.33
5. Client's Share is $9,666.7[before liens]
6. Less $5000 advanced with fees now equals $6,666.67
7. Balance due client $3000 at time of settlement.
***So in reality the client initially received $5000 as an "advance " on settlement plus he/she would receive another $3000, for a total received of $8,000. But, what happens? The client says I'm only getting $3000, the other $5000 "doesn't count"(short memory). The client then becomes stubborn, turns down the offer and the case is lost on threshhold. Everyone loses! I always ask the attorney if the client is coachable.
Moral of the story; always remind the client that the amounts received from funding are part of the ultimate settlement.