All litigation funders charge extortionate fees don’t they?
Here at Apex Litigation Finance we specialise in providing litigation funding for low to medium size claims. When we speak to claimants about litigation funding there are often some common concerns that they have. One frequent example is that they fear litigation funders charge extortionate fees.
There is still a lot of confusion about litigation funding, after all, it is a relatively new and very fast-growing sector. For many claimants it can seem like litigation funding is too good to be true. They have a claim which they believe is just, but they cannot afford to follow it through, or are unable to accept the financial risks associated with losing. Now someone is offering to help them financially, with nothing to repay if they lose. It all just feels too good to be true. Where’s the “catch”? Surely the funder will charge a large fee for the risk they are taking?
However, there is no catch. Not all litigation funders expect extortionate fees.
All litigation funders have their own views on how fees should be structured and what returns they should receive for the risk they are accepting. They do this by looking at the amount of investment that will be needed for the case to go ahead in proportion to the value of the claim, the expected length of the litigation, the likelihood of early settlement, the legal merits of the case and the ability of the defendant to pay.
Here at Apex Litigation Finance we work with the claimant and their legal representatives to find a funding solution that provides real value. Our fee, upon success, is pre-agreed and is normally a small percentage of any settlement achieved or a multiple of the committed investment. As Apex’s fee is pre-agreed, there will be no nasty surprises when the case is won.
It’s important to note that Apex provides non-recourse investment in the litigation. This means that if the litigation case is not won, the claimant will not be charged any fees and there will be nothing to repay.
At Apex Litigation Finance we know we offer our clients a fair and reasonable agreement for our services, which provides real value. One huge benefit for claimants, of our funding model, is the quick decision time. We have processes in place, including the use of an Artificial Intelligence predictive tool, that can speed up funding request approval and reduce the cost of assessing and managing the application. This means that we are able to approve applications faster than the majority of our competition, whilst driving down the fee upon success, due to reducing our costs.
If you need help with litigation funding from a trusted and professional funder that does not charge extortionate fees; call us now or see our contact page for more details of how to get in touch.