What is Litigation Funding?
Litigation funding, also known as third-party funding, enables a party to litigate a case without having to pay for it, whether that’s because they simply can’t afford it or because they don’t want to. A third party funder can pay some or all of the costs associated with a dispute in return for a share of the proceeds if the case is successful. If the litigation is not successful, the funder bears the costs it has agreed to fund.
Litigation funding can be off-putting, even if you’re a business with an excellent claim. Third-party litigation funding can shoulder much of the cost and risk involved and enable actions to go ahead when they might otherwise delay for longer.
Whilst there may be benefits of litigation funding, however it isn’t for everyone. If you can wait out the court system along with your defendant’s lawyers and their insurance company then you’ll find that you’re actually in quite a good position.
However if you’re in a serious lawsuit and are struggling to pay for it because the cash you’re expecting hasn’t come through yet then litigation funding can be a great benefit to you. Here are a few reasons how litigation funding can help you and your case.
1. Litigation funding can level the playing field so the case isn’t won simply because one side has more money.
2. Litigation funding gives you cash which helps you to handle the bills and expenses that you have to pay now. They will fund you while you wait for your lawsuit to settle and for you to receive your money/compensation.
3. Litigation funding can help relieve some of the stress that you and/or your business may be feeling as a result of the lawsuit.
Unfortunately large lawsuits are a long and lengthy process, they’re stressful and very costly. Litigation funding companies helps lift a bit of the financial weight so that they have the money to carry on pursuing their case until a fair settlement is offered.
If you are interested in benefits of litigation funding, please contact a litigation funding company for additional information.