Answers to some of our most commonly asked questions.
There are many terms used to describe the industry, Litigation Finance, Litigation Funding and Third-Party Funding. Regardless of what term you use, the concept is the same. Litigation funding is when a financing company uses a lawyer’s contingency case (or cases) as collateral to provide a loan to the lawyer. Lawyers who work on contingency can wait for years before they see a recovery. In the meantime, they still have to pay for the overhead of their law firm. Litigation funding provides a bridge loan during these periods between recoveries. The funder will do an “underwriting” of the cases to determine if the likelihood of success, and if the lawyer wins, how much of a fee will they be entitled to. The Funders will calculate the potential value of the legal fee from a single case or a group of cases, and then loan the lawyer a portion of that potential recovery.
We work with all types of attorneys and all types of cases.
· Personal injury
· Mass torts
· Medical Malpractice
· Commercial litigation
· Antitrust
· Qui Tam
· Patent
· International Arbitration
We work with loan requests from $500k to $50m.
REMO prides itself on doing a lot of the underwriting work BEFORE submitting your information to the prescreened funders. We’ve been behind the curtain at litigation finance companies and know how funders make their decisions. We know what information and analysis they need to make a funding decision. We do this work before sending our client’s pitch deck to them. By taking this work off the funders plate, it encourages funders to put our applications on the top of the pile and to complete their underwriting much quicker. We also provide you with guidance and advice when evaluating your offers.
Absolutely not. We will stay with you through the entire process until we get you funding or a firm no from all possible funders. Obtaining funding is an iterative process. As the funders learn more about your situation, they will request more detailed information. We will streamline this process so that you are only providing your information one time. When we get a request from one funder for a particular piece of legal or financial information, we will proactively share this information with all interested funders via our platform. This proactive approach with help speed the underwriting process.
We charge 3-6% of the amount of funding you receive. There is no charge if we don’t get you funding.
Banks are used to using hard assets as collateral for loans, like equipment and buildings. Contingency lawyers usually don’t have these assets. Litigation funders will use the potential fees from of the cases as collateral. Also, most funding is provided on a non-recourse basis, meaning a personal guarantee is not required.
Most litigation funding is considered "non-recourse" and not considered debt. Non-recourse means that the funder is "betting" on the success of the case and only gets repaid from the recovery in the law suit. The lawyer does not have to personally guarantee the loan or put up other collateral.
