Benefits of Commercial Litigation Funding

Are you looking at acquiring some commercial litigation funding in the New Year? It can be a confusing and complicated process so we have come up with a list of benefits to help clarify a few things.

Here are some of the benefits of commercial litigation funding:

1)      There is no need to sell your assets

By securing the support of litigation funding you will no longer need to put your own assets on the line to support your claim. Whilst third party litigation funding will mean you won’t receive as much of the pay out on winning, it does mean that your assets are safe.

2)      Legal Costs

Some funders enforce a conditional fee agreement on their lawyers which states no win no fee. Whilst this may seem harsh, it does mean that all parties are striving for the same goal, to win. Alternatively, litigation funders may provide legal counsel for you from their own staff of employees. This will save both you and them money and in turn increasing the pot at the end.

3)      Keep your balance sheets clean

Companies who fund their lawsuits themselves have to declare their spending on their company balance sheets. Often this can have a detrimental effect on the way the profitability of your company is seen. By securing funding from a third party the financial costs will appear on their balance sheets and yours will remain unaffected. This is a benefit when it comes to assessing the outcome of your case.

4)      Buyer Power

One of the greatest benefits to securing litigation funding is the additional income will mean you will be able to purchase better lawyers, investigators or experts in order to help you win. Support from a well-known litigation funder can also add weight in the eyes of possible contractors as their reputation with be enough to prove you, an unknown, are worth the risk.