Most law firms approach litigation funding as a straightforward process, but those with industry knowledge understand that funders operate with hidden rules and strategies. By learning these insider insights, attorneys can position themselves for better funding terms, maximize approvals, and establish stronger relationships with lenders.
Experienced law firms leverage these strategies to secure capital for case portfolios and practice expansion. Understanding how funders assess applications—beyond just case merit—allows firms to negotiate better terms, optimize funding agreements, and take on more complex, high-value cases. Smart financing can provide a competitive edge, helping firms compete with larger practices and grow sustainably.
Litigation Finance Hacks That Lenders Hide from You
Litigation funding companies rarely disclose the full scope of their underwriting and approval processes. They use complex evaluation criteria that extend beyond the strength of a case, often keeping law firms in the dark about what truly impacts funding decisions.
By understanding these hidden factors, attorneys can strategically position their funding applications for success. Funders may not openly share details about how timing, firm efficiency, and previous funding relationships influence their decisions. Knowing how to navigate these opaque practices can help law firms secure better funding terms, reduce costs, and gain litigation financing access more efficiently:
When You Apply Matters
One thing that attorneys need to remember is that litigation finance firms are a business just like anything else. That means that they operate on a traditional fiscal calendar, and the timing of your loan application can substantially impact your chances of being approved.
For instance, applying at the beginning of the year gives lenders little incentive to approve your funds since they still have an entire fiscal year to meet their deployment goals. However, applying before year-end, or even at the end of a fiscal quarter, increases your odds of approval, as lenders will be preparing to showcase their numbers to investors and shareholders. We realize that if you are in need of funds, it's difficult to delay your request, but if you have the flexibility, its worth considering.
You Should Shop Around For Funding
Let's face it, applying for litigation finance is difficult and time consuming. Because of this, we understand that you only want to apply to one company. And, it’s natural to jump at the first offer of litigation finance funds you receive. After all, the sooner you get your funds, the sooner you can move on with your case, right? On the contrary, you should shop around and compare offers before you make your final decision. In many cases, litigation finance companies will attempt to lock you into an exclusive deal before you’ve had the chance to weigh your options. But by shopping around, you can leverage your law firm's strengths and create competition amongst potential lenders, which will only improve your financing terms in the long run.
Not All Loans Are Created Equal.
Speaking of comparing loan offers, you should also keep in mind that not all litigation financing deals are created equal. That’s why it’s essential to clearly define the financing structure, terms, and interest rates you’re looking for before you start the application process. This saves you the time and hassle of comparing third-party funding structures that don’t meet your needs and eliminates the risk of committing to a loan that won’t benefit your firm.
You Have The Power to Negotiate
Attorneys are trained to be experts in the art of negotiation, but surprisingly we don't see them use this skill when seeking litigation finance. Even if you've been offered a particular set of terms from a potential lender, you still have the power to negotiate nearly all of the particulars of your loan. Everything from your interest rate to the waterfall of litigation funds can be negotiated, and most litigation finance firms are willing to work with you to find a reasonable agreement.
Lender Reputation Isn't Everything
Of course, having a lender with a strong reputation is always a positive when securing litigation finance funds. But you might not realize that there are some instances in which reputation carries less weight.
Say you’re applying for a loan with drip funding, and you’ll be working with your lender for the duration of your case, most likely years. Experienced funders have years of experience seeing litigation play out. They actually have been involved in more litigation than even the most experienced litigator. This experience can be invaluable and paying a premium to work with a top finance company is worthwhile.
However, say you're looking for financing with a one-time pay-out on a settled case, and you won't need ongoing support from your lender, then you can save yourself a sizable premium and choose your loan weighing price and terms more than reputation.
What Factors Secretly Influence Funding Decisions?
Litigation funders evaluate more than just case merit when deciding whether to approve funding. They use hidden metrics that assess law firm efficiency, historical settlement timelines, and attorney success rates. These factors help funders determine how quickly a firm resolves cases, its track record in securing favorable settlements, and how effectively it manages resources.
Key hidden criteria that impact funding decisions include:
- Prior Funding Relationships – Firms with a history of successful funding agreements may receive better terms.
- Portfolio Diversity – Funders prefer firms with a balanced mix of high-value and lower-risk cases.
- Case Management Practices – Firms with structured workflows and efficient case tracking are seen as lower-risk investments.
- Attorney Success Patterns – Funders analyze a firm's past case outcomes, including settlement amounts and win rates.
By understanding these hidden factors, attorneys can strengthen their funding applications, position their firms as reliable investments, and improve their chances of securing favorable litigation finance terms.
How to Find Quality Litigation Finance Support
Applying for a loan through third-party funding can be stressful, even for the most seasoned legal counsel. REMO was founded on the principle that litigation finance should be fast, simple, and transparent. Our innovative approach to securing litigation funds takes the time, hassle, and headache out of the loan approval process, and we work with you every step of the way. Learn how REMO can help you find the funds you need today.
When searching for litigation funding, it’s important to vet potential funders carefully. Look for those with transparent terms, a solid industry reputation, and expertise in cases like yours. Connecting with funders through industry networks, peer recommendations, and legal associations can help identify reliable options. Comparing multiple funders and understanding their track record ensures you find a financial partner that aligns with your firm’s goals and long-term needs.
FAQs
Are there secret ways to speed up funding approval?
Some funders prioritize applications with well-organized documentation and clear case summaries. Preparing all necessary paperwork and responding quickly to funder requests can help speed up the process.
How can you negotiate better funding interest rates?
Comparing multiple funders, understanding industry standards, and leveraging competitive offers can help secure better terms. Some funders may also adjust rates based on case strength and risk.
Can you get funding without attorney cooperation?
In most cases, attorney involvement is required, as funders need case details and legal insights to evaluate risk. Some funders may offer options for plaintiffs, but attorney cooperation improves approval chances.
What funding options do litigation funding companies rarely mention?
Some funders offer hybrid funding structures, portfolio-based litigation funding financing, or flexible repayment plans that aren’t always advertised. Asking about alternative options can uncover better solutions for your case.
Are there hidden ways to reapply after rejection?
Refining your application, strengthening case details, or addressing funder concerns can improve your chances of approval on a second attempt. Seeking feedback from the original funder can also help you adjust your approach.
