Answers to some of our most commonly asked questions.
Litigation finance allows law firms to leverage contingency cases as collateral to secure vital funding. This specialized financial solution provides working capital during the often lengthy period between case initiation and resolution, which can take 2-5 years.
The process involves detailed underwriting to assess case merit, potential recovery value, and the firm’s track record. Funders evaluate individual cases or portfolios and offer a portion of the anticipated recoveries as upfront capital. This funding enables law firms to cover operational costs, take on new cases, and maintain growth without cash flow constraints.
REMO collaborates with a broad range of law firms across different practice areas, including personal injury, mass tort, medical malpractice, commercial litigation, antitrust, qui tam, patent litigation, and international arbitration.
Each firm is matched with funders that align with its unique needs and case portfolio. Our industry expertise ensures that law firms in diverse fields receive tailored financial solutions.
The funding we secure typically ranges from $500,000 to $50 million, depending on the law firm’s requirements. Factors such as case portfolio value, expected resolution timelines, historical success rates, and current market conditions influence the funding amount. By aligning financing with the firm’s goals, we ensure the right level of support is provided.
REMO simplifies the funding process from start to finish. First, we conduct preliminary underwriting to evaluate case portfolios and funding needs. We then prepare comprehensive pitch materials highlighting key case metrics and aligning with funder requirements.
Throughout the application process, REMO acts as an intermediary, managing communications, answering funder queries, and negotiating favorable terms. This hands-on approach reduces the burden on law firms and significantly improves approval chances.
Once information is submitted, REMO manages the process by coordinating funder requests, securely sharing documents, and proactively updating all interested parties.
Our platform ensures seamless communication while reducing delays. We guide law firms through evaluating offers and support them during the closing process, staying engaged until funding is secured—or all options have been explored.
Our fee structure is straightforward: we charge 3-6% of the secured funding amount, with no fees if funding isn't obtained. This success-based model aligns our interests with those of our clients.
Traditional bank loans typically require tangible assets, such as real estate, as collateral. Banks also often mandate personal guarantees, which can increase financial risk.
By contrast, litigation funding is non-recourse and secured by potential case recoveries, making it a safer and more practical choice for contingency-based law firms.
Litigation funding is not considered traditional debt. It is structured as non-recourse financing, meaning repayment is contingent on case success. There are no personal guarantees; repayment comes solely from recoveries, and the firm’s credit standing remains unaffected. This makes it a low-risk financial solution for firms reliant on contingency fees.
REMO Starts with a thorough evaluation of your firm’s portfolio and funding needs. This includes reviewing case documentation, analyzing potential recoveries, assessing timelines to resolution, and evaluating your financial position. Stress-testing portfolios help identify risks and determine your firm's most suitable funders and structures.
Funders usually request documents such as case summaries, liability and damages analyses, current case expenses, settlement demands or offers, and firm financial statements. REMO ensures these materials are well-organized and presented in the format preferred by funders, simplifying the review process.
While timing varies based on complexity, a typical timeline includes an initial evaluation (1-2 weeks), funder preliminary review (2-3 weeks), detailed underwriting (3-4 weeks), term sheet negotiation (1-2 weeks), and closing (2-3 weeks). REMO's pre-underwriting process and established funder relationships often help accelerate this timeline.
Law firms can access single-case funding, portfolio funding, credit facilities, post-settlement funding, and appeal funding. The right structure depends on your firm’s specific needs and case mix, providing flexibility to address both immediate and long-term financial goals.
Litigation funding is designed to preserve the attorney-client relationship. Clients retain full control over their cases, including settlement decisions, and funding terms do not impact client recoveries. Professional obligations and ethical standards remain intact throughout the process.
In early settlement scenarios, funding agreements often include reduced return multiples, pro-rated fees, or prepayment options. These terms help law firms manage costs while maintaining profitability. REMO works to negotiate favorable early resolution terms on behalf of its clients.
Yes, litigation funding can support broader firm growth. It can cover case acquisition costs, marketing campaigns, hiring staff, expanding office space, or upgrading technology. Law firms can achieve sustainable development by structuring funding to balance case expenses and growth initiatives.
