4 Benefits Of Using Commercial Litigation Funding

What are the benefits of using commercial litigation funding?

While on the surface commercial litigation funding seems like a daunting and complicated process whereby costs and services are combined and exchanged for the greater good, this simple article will explain the benefits of using commercial litigation funding.


Commercial litigation funding is the process whereby a third party makes a financial agreement to cover a proportion or all of the cost needed to pursue litigation. In return, the third party receives a previously agreed share of the proceeds if the case is successful. Funders do enter into these agreements, however, knowing that if the case proves to be unsuccessful, they will lose all their funding with no means of recouping it.

Funding Providers:

Unlike cases where claimants employ the services of 3rd parties, e.g. Solicitors who get paid by invoice after the event, commercial litigation funders are reimbursed automatically as the cost of their support has already been factored into the settlement amount. The claimant has the money, so as soon as it is signed off they will get paid.

By eliminating the delay in return on investment you not only avoid unnecessary repayment plans but also improve the appeal of funding claims for others.

Bye, Bye Bad Debt:

In arrangements where services are provided and payment is received on completion, service providers run the risk of losing out if for some reason the claimant were to be rendered bankrupt. Their invoices would enter into a pile of many and only be dealt with in time. Providers of commercial litigation funding wouldn’t be affected by this for the same reason a explained in point one.

Claimant Status :

In a fair society how much money you have shouldn’t affect the quality of service you receive. Luckily for those claimants with commercial litigation funding, we don’t live in a fair society. The addition of funding will enhance the claimants standing and reflect in the level of service they receive.

This is a benefit that money can’t buy, but that having money can attract.

External Benefits:

Commercial litigation funding is not only beneficial to those they are funding but to a wi9der audience. The more the process and the widespread acceptance of litigation funding being an acceptable means of fuelling a claim spreads, the more people will engage with it. More claimants will be able to make previously impossible claims due to financial restrictions.

As you can see from this brief but succinct overview, commercial litigation funding has a reach well beyond its initial purpose. As litigation funding becomes the norm more claimants will be able to make previously impossible claims and third parties will be encouraged to become funders due to the increased potential benefits. To learn more about Commercial Litigation Funding speak to an expert: Woodsford Litigation Funding


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