- Damages play a crucial role in attracting funders to your case. Funders typically look for a ratio of damages to requested funding of 10 to 1. For instance, if your case involves projected damages of $10 million, you will likely qualify for $1 million in funding. While each case varies, this guideline can be helpful when approaching potential funders.
- In addition to damages, collectability is another key consideration for funders. It's not just about winning the case; you must demonstrate that you can effectively collect from the defendant. Assess whether the defendant has assets, particularly in the US, that could cover the damages. Understanding any existing judgments, liens, or debts that may impact your ability to recover funds is essential. Companies with assets solely in countries like Russia or China may pose challenges for funders.
- Moreover, funder evaluation is greatly influenced by the risk of a complete loss. Cases with potential dismissal risks or ongoing motions for dismissal or summary judgment may deter funders. Additionally, looming Statue of Limitation (SOL) issues can raise concerns. Address any SOL concerns transparently in your pitch to reassure funders about the risks involved. It's crucial to navigate these aspects effectively to enhance your chances of securing funding for your legal case.
Damages, collectability, and risk assessment are vital factors for lawyers seeking funding. These three tips can significantly impact your ability to secure financial support for your legal cases. However, navigating the funding process can be complex, especially for those new to it.For lawyers unfamiliar with the funding process, considering a broker like REMO could be advantageous. REMO specializes in connecting lawyers with the best funders for your situation, crafting compelling pitches, and negotiating for favorable terms. Notably, REMO operates on a contingency basis; if they are unable to secure funding for you, there are no fees involved.By leveraging the expertise of REMO, you can streamline the funding process, increase your chances of obtaining financial support, and focus on building a strong case. Partnering with a knowledgeable broker like REMO can provide valuable guidance and support as you navigate the complexities of legal funding.
