Litigation Funding

Corporate Commercial Litigation Funding

The pursuit of litigation in relation to commercial disputes can require significant capital investment. Business Litigation finance can allow companies to take legal action whilst continuing to operate the business as usual. 

  Business Litigation Finance takes the cost of the litigation off the balance sheet and doesn’t therefore affect the availability of working capital. This type of funding is non-recourse. There are no repayments to be made if the case is unsuccessful. Funding is available for single cases or a portfolio of cases.

  Litigation funders will also consider monetising claims in order to provide the business with working capital. The litigation funder assesses the proposed or ongoing claim as an asset. Litigation Funders will assess claims, judgements and awards where the company involved is in financial distress or is insolvent. This can generate working capital to rescue the business.

  Where the case cannot be placed with a Litigation Funder we will seek to find other ways to generate the working capital necessary for commercial clients to bring a claim.   

Litigation Finance and Insolvency

 Litigation finance can provide solutions for businesses in financial distress where other financing options are unavailable. The litigation funder will look at any potential or ongoing claims, any existing judgements or awards as assets in the business and will consider monetising the claim to provide the business with working capital. 

 Insolvency practitioners are making increasing use of litigation finance in order to ensure the best outcome for creditors. Similarly the litigation funder will consider monetising claims or investing in potential claims to finance the legal action. 



 Litigation funders view litigation and arbitration claims as assets to which a monetary value can be attached.

Law Firms

Litigation Funders are increasingly providing finance directly to law firms. As for other corporate and commercial clients, litigation finance can provide the law firm the working capital necessary to take on litigation cases where the client cannot secure the costs. The law firm is enabled to draw on litigation funds to operate for cases whilst acting for clients on a contingency basis.

The finance is non recourse as the firm repays the funds from the proceeds of the firms realised contingency work. 

Repayment can be structured to manage staggered repayment, enabling the law firm to retain a proportion of the proceeds from successful cases, protecting against cash flow pressures and managing the financial risk to the firm. The retention of working capital also allows for growth, taking on more cases and building revenue.

Portfolio funding to law firms allows for operating multiple cases through a single facility. This could involve pursuing a number of separate claims simultaneously or multiple claims on behalf of one claimant. As the risk to the funder is spread across the portfolio the cost of the investment may be reduced and may allow for a lower likely success threshold across the portfolio. 

  Litigation funders are able to provide finance against ongoing litigation cases. This includes working with law firms managing clinical negligence and personal injury claims working with clients on conditional fee agreements.