What is Litigation Finance?

Litigation financing involves a third party providing the financial resources to enable costly litigation and arbitration cases to proceed. Without this funding many individuals and corporations would not be able to pursue claims.

Litigation Finance for Law Firms

Law firms may not be able to accept cases without  litigation finance in place to mitigate the financial burden and financial risk to the business. Litigation finance can allow law firms to access funds without this impacting adversely on their company accounts. Bespoke repayment options, based on the success of ongoing litigation and arbitration processes, allow the law firm to retain working capital. This manages any ongoing financial risk from a portfolio of cases and facilitates business growth. 

Litigation Finance for Companies

Corporate, institutional and financial services are increasingly making use of third party litigation funding. It enables meritorious claims to be brought without affecting the financial stability of the business.

Using Litigation Funding

Litigation funding is ‘non-recourse’ as the client/ litigant or law firm repays the investment from the proceeds of the realised contingent work.

Litigation Finance can be applied in many circumstances including,

• Single case funding
• Group and class actions
• Mass consumer and corporate claims
• Commercial litigation
• Competition and antitrust
• Local and international arbitration
• In high value divorce settlements
• Disbursement only funding
• Portfolio funding
• Adverse cost risk and awards
• Appeals and enforcement funding
• Awards monetisation
• Claim and award acquisition
• Working capital facilities
• Funding to cover the costs for "Before and After the Event Insurance Cover".
  
  

Variables in the litigation funding market.

Litigation funders typically operate in niche areas of the market. As a result it can be difficult to know which funder to approach.

Legal Funding Questions

• Who will accept cases from which source?
• Which type of law firm will the lender be comfortable with?
• Who will work with single or group claims?
• Which areas of law practice are the lenders interested in investing in?
• Who will lend from £50,000 to £500 million?
• What type of case will which lender consider?
• What is their appetite for risk?
• What are the expected returns for the lender?

Why us

As brokers, we offer financial  loan services to clients in many commercial environments and for all aspects of business growth and development.

We may be able to facilitate access to working capital from across a panel of over 150 lenders with a broader scope than traditionally taken by funders focussing solely on litigation finance products. 

We have extensive experience of providing niche, bespoke finance solutions for commercial clients. We work with sole traders, SME’s through to PLCs and will work to provide an appropriate solution tailored to our customers. As brokers it is in our interests to find you the most effective and appropriate finance solution. We are working to develop and maintain positive relationships with our clients and with the lenders and investors.

Litigation funders are investing in your claim and their return is dependent on the outcome of the legal action. They will therefore carefully assess the safety of their investment before entering into an agreement. Litigation finance may not always be an option.

For commercial clients we use our experience in this sector to explore other options to generate working capital, to support the financial stability of the business to enable to business to bring cases.

We work with a panel of over 150 lenders through a sister company and can access finance solutions with a broad scope.