Embedded Financing: Helping Tax Resolution Firms Win More Clients
Turning “Maybe Later” Into “Yes”
In tax resolution, timing is everything. Clients often need immediate help but hesitate when faced with the full cost upfront. Too often, that hesitation turns into lost opportunities.
Embedded Financing from LendingUSA changes the conversation. By integrating financing directly into your process, you not only make it easier for clients to move forward — you also give them a way to fund your services that strengthens their position with the IRS.
Why Credit Cards Undermine the Strategy
Many clients turn to credit cards to cover retainers, but this can backfire:
- Credit card payments are not considered allowable expenses by the IRS
- They’re listed as unsecured debt, which is generally disallowed in Reasonable Collection Potential (RCP) calculations
- Higher debt ratios can weaken a client’s case in Offer in Compromise or installment plan negotiations
How Embedded Financing Creates a Strategic Advantage
By using LendingUSA’s financing instead of credit cards, your clients can:
- Classify payments as allowable: Monthly loan payments qualify as professional fees under IRS guidelines
- Preserve credit: Clients avoid adding revolving debt that could limit future approvals
- Engage immediately: You’re paid upfront, and clients start services faster
- Strengthen compliance profile: Financing structured as allowable expenses makes clients look proactive to the IRS
For Your Business
With Embedded Financing, firms unlock key advantages:
- Upfront payments without costly discount fees
- Higher approval rates with customizable credit standards
- Less operational burden since LendingUSA handles servicing and compliance
Ready to see how Embedded Financing can increase client conversions and improve case outcomes? Book a demo today.
References
- IRS IRM 5.15.1.10 – Allowable Expenses: IRS.gov
- IRS IRM 5.8.5.20 – Offer in Compromise Expenses: IRS.gov
- Treasury Reg. § 301.6343-1(b)(4): Law.Cornell.edu
Disclaimer
All loans through LendingUSA are made by its lending partners.
lendingusa.com/lending-partners
This advertisement is only directed to merchants.
