The Advantages Of Third Party Funding
Here at Apex Litigation Finance Limited we offer third party funding for commercial litigation cases. This is also known as litigation funding. There are many reasons why a potential party may approach a funder for third party funding.
Below we share some of the most common reasons that we are approached for third party funding and the advantages of third-party funding for these claimants.
Litigation and arbitration can be extremely expensive. If a clamant does not have the means and funds to pursue, or even begin, a meritorious claim, third party funding can be extremely useful and sometimes their only option.
Some claimants have the money to pay for the litigation but may want to lay off some of the financial risk of pursuing the claim. Legal proceedings can be very costly, and a claimant may be willing to give up a proportion of the recoveries to enable them to manage the financial risk of the case. If a company is pursuing a claim, they can use the financial support provided by the funder to relieve the need for them to fund the case from their own cashflow. When a funded party is relieved of the costs for the litigation, it is relieved of cost pressures and cash-flow issues that are often tied into the legal dispute allowing their normal business to continue without added disruption.
Third party funders will only be interested in funding good claims, i.e., those that they think will be successful. A third-party funder will conduct extensive due diligence and analysis of the case before they agree to offer funding for the case. The other party may become aware of the backing of a funder, and this can sometimes be enough to encourage an early settlement.
Levelling The Playing Field
Where a claimant with little means is faced with a defendant that has substantial or unlimited resources and finance, it can seem unfair. However, with the support of a third-party litigation funder, the financial playing field is levelled, preventing meritorious cases from being discontinued due to financial pressures.
Want to know more about the advantages of third-party litigation funding?
Contact our team now:
20-22 Wenlock Road, London, N1 7GU
+44 (0) 208 012 7944