Litigation funding has become increasingly popular over the years, as businesses look to save money on the cost of bringing claims to court.
When facing legal damages, many companies run the risk of losing out if their case isn’t strong enough. However, should they have a sturdy case but lack the funds to fight a legal battle; litigation funding could be the way forward.
First of all, what is litigation funding?
Litigation funding is sometimes known as third party funding. It can be an effective way for businesses to get the results they want without having to spend make a considerable cash outlay.
If a business needs to represent itself in court but has no available funds to do so, it can contact a litigation funding company through the law firm that is representing it. The funder will then decide whether to fund their case. If a case is won, the costs can be recouped from the winnings and still leave the company with a hefty sum. If a case is lost, you still walk away – it is the funder that takes the risk.
Are there any catches?
As long as you choose a reputable funder, there shouldn’t be any catches involved with litigation funding.
You should agree on the amount the funder receives once the case is over when first starting out, to clear up any issues further down the line. It is also important to remember that third party litigation funders are generally only interested in high-paying court cases, with the minimum winnings usually starting at £500,000.
How can I get litigation funding?
If you’re interested in litigation funding, you should speak to your solicitor, and they will let you know whether it would be a suitable avenue for you. Before agreeing to anything, you should confirm the funder’s credentials and read up on their history as a litigation funding specialist to ensure you choose the right one for you.
Should I take out litigation funding?
At the end of the day, the choice is yours, but if you have a solid claim that could be worth a substantial amount of money it is definitely worth considering.
You can find out more about litigation funding by speaking to your solicitor or searching online now. There are many reputable litigation funders out there, so it’s often a case of finding the ideal one for your business.
This article was written by Aurora Johnson on behalf of Vannin Capital, a specialist litigation funding company.
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