What is litigation finance?
Litigation finance allows you to borrow money towards making a claim against another individual or company. The sum is used to support any legal fees, solicitors’ fees, court fees and other daily living costs so that you can make a claim against a company and potentially receive a significantly larger financial outcome. This type of finance is designed to provide you with less financial risk and give you the opportunity to go to court which otherwise may have not been financially viable.
Do litigation finance companies take fees?
No, litigation funders do not take upfront fees, instead they take a stake of your potential compensation package which could be enormous. As a result, financiers practically work on a no-win, no fee basis and will need to verify the strength of your case in order to get behind you. Some companies we work with at Litigation Backing will offer different payment structure including success bonuses if you require further capital on top of what you have borrowed.
What is the litigation finance industry worth?
The litigation finance industry is worth a reported £10bn in the UK, and has increased threefold in the last six years. Globally, the industry is estimated to be worth £70bn and a recent survey showed that 33% of corporate court cases used some kind of litigation finance.
How much can I borrow through litigation funding?
Financial offers start from as little as £1,000 but most of the companies we feature at Litigation Backing require a minimum of £25,000 or even £250,000. Either way, we can find the right lender to suit your requirements.
In terms of a maximum amount, depending on the case, it can be £100 million or even £2 billion.
What fees are covered?
The fees typically covered by litigation funding includes any kind of court fees including legal fees and lawyer fees – anything you need to litigate and successfully win your claim. Most lenders will also cover daily living costs so that you can continue to live as normal until your dispute has been resolved.
What are common reasons for using litigation financing?
- Shareholder disagreements
- Reclaim shares
- Class actions
- Unfair dismissal
- Corporate disputes
- Defective products
- Personal accidents
- Accidents to property
- Failures to pay
Do I need litigation insurance?
You do not require any litigation insurance by law or legal requirement. However, it is something that is commonly sold with litigation finance and is regularly encouraged by the funders we work with. Insurance can give you some additional peace of mind if your court case ends unsuccessfully and still provides some level of compensation to you and your lawyers.
What is required to be accepted?
The partners that we work with at Litigation Backing each have a different criteria including what type of companies they lend to and the minimum and maximum amounts. Since litigation backers earn on the basis of you winning your claim, any strength to your case is valued. This includes having a record of any wrongdoing by the other party and any evidence of wrongdoing. If the potentially guilty party is a large organisation and has sufficient funds, this will also make the case more appealing for a financier.
Are you a financier?
No, Litigation Backing is a team of individuals with a legal background in litigation. We work closely with the main litigation providers in the UK. By providing information about your case, we will review it internally and put you in touch directly with the company mostly likely to proceed and fund your case. Simple.