Litigation funding is money in the form of an investment that enables a litigating client or the client’s Solicitor to prosecute a legal action. Sometimes, without sufficient litigation funding, access to justice is denied or the client simply does not have the means or the nerve to see their case through to conclusion (or the financial muscle to stand up against Goliath).
Litigation funding can unlock the door to achieving a balance between risk and reward when proceeding with a legal action.
How does Litigation Funding work?
Litigation funding is non-recourse, which means it is secured against the successful outcome and physical recovery of proceeds. In the event of a ‘win’, the Funder requires their money back plus a return on their investment; in the event of a ‘loss’, the Funder loses their money and the client will normally have no liability or debt to the Funder.
Litigation Funders are prepared to bear the cost and the risk for a single claim or a portfolio of recoveries.