Will Litigation Funding Reduce The Chances Of My Claim Settling?

Jan 18, 2021

Litigation funding is a fast-growing sector, not just in the UK but across the globe. More investors are placing ever larger sums into the litigation finance market each day and new providers of litigation funding are regularly emerging.

The specialist team here at Apex Litigation Finance have worked with numerous small, medium and large businesses to provide funding for their litigation and support them in winning their cases.

However, there are many common misconceptions around litigation funding. One of the most common questions we are asked, as a litigation funding company, is “Will having funding reduce the chances of a claim settling?”.

The simple answer is “no”. In fact, in most cases, the opposite is true. Many Courts acknowledge the value that litigation finders offer claimants and the presence of a funder in a claim will show the defendant that an experienced and professional third party believes that the business has a strong claim. They believe that the case is so strong they are risking their money to fund the claimant for the duration of the case.

In our experience, we have seen many cases where the presence of a funder in the action actually incentivises and prompts the defendant to settle the claim. This will often be done through some form of Alternative Dispute Resolution. This is known as an ‘out of court settlement’.

The benefit of an out of court settlement and/or alternative dispute resolution is that the potentially lengthy Court action is removed, costs are reduced and all parties are happy to have the dispute resolved sooner.

If you would like to know more about litigation finance or have any queries about how funding for your case could work; call our experienced and professional team now. Alternatively contact us online via our contact form.

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