Litigation funding is a valuable tool that can provide access to justice for those who may not have the financial resources or do not wish to tie up their own funds.
It can be difficult to understand the process of getting litigation funding and how it works, but with some research and understanding, you can make an informed decision about whether it’s right for you.
Litigation funding, also known as litigation finance or legal financing, is a form of capital provided by third-party investors to fund legal costs associated with a lawsuit.
This type of financing allows claimants to pursue costly litigation without having to pay out-of-pocket expenses. The investor provides the funds in exchange for a portion of any settlement or award received from the lawsuit.
Any individual or business involved in a lawsuit can benefit from litigation funding. This includes individuals who are unable to afford the costs associated with pursuing their case, businesses that are facing large legal bills, and even law firms that need additional capital to cover expenses related to a case.
When applying for litigation funding, funders will typically look at several factors before deciding whether or not they will provide capital. These include:
There are many sources available where you can find litigation funding, including commercial lenders, private investors, venture capitalists, law firms, and online platforms such as LexShares or Parabellum Capital. It’s important that you do your research before choosing a funder so you can ensure that they have experience working on cases like yours and understand your needs. Additionally, make sure that you fully understand any terms or conditions associated with their investment before signing any agreements.
Litigation funding can be an invaluable resource for those who need financial assistance during a lawsuit but don’t have access to traditional forms of capital such as bank loans or investments from family members or friends. With careful research and consideration of all factors involved in obtaining this type of financing, you can make an informed decision about whether it’s right for you and get the help you need during this difficult time.
Answers to some of our most commonly asked questions.
Litigation funding is available for most types of civil lawsuits, including commercial disputes, class action suits, and personal injury cases.
Generally speaking, litigation funding does not require repayment unless there is a successful outcome in the case. If there is a successful outcome, then the funder will receive a portion of the proceeds from the lawsuit as payment for their services.
The cost of litigation funding varies depending on the specifics of each case and the terms agreed upon by both parties. In general, funders will charge an upfront fee and may also take a percentage of any proceeds from a successful outcome as payment for their services.
The approval process for litigation funding can vary depending on the complexity of each case and how quickly all necessary documents are submitted by both parties involved in the dispute. Generally speaking, it can take anywhere from several days to several weeks to get approved for litigation funding.
Litigation funding is typically provided by third-party companies known as “litigation funders” or “legal financiers” who specialize in providing capital to litigants or their attorneys in exchange for a share of any proceeds from a successful outcome in the case.
