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Understanding Litigation Funding: What You Need to Know

Litigation funding is a financial product where a third-party funder provides capital to cover legal fees and costs associated with litigation. It is particularly beneficial for SMEs that need to pursue legal action but lack the necessary resources. By engaging in Litigation Funding, businesses can focus on their case without the financial burden.

Secure up to £500,000 in Litigation Funding with Funding Agent.

  • Quick and easy application process
  • Loan disbursed within 24 hours
  • No additional charges for early repayment
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What are the benefits of Litigation Funding?

The advantages of Litigation Funding include providing access to justice for SMEs, enabling cash flow management, and mitigating financial risk. Businesses can secure funding amounts ranging from £100,000 to £50 million, with decision times as fast as 2 to 8 weeks.

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Access to justice
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Risk mitigation
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Financial flexibility

What are the different types of Litigation Funding?

Single-Case Funding

Eligible for SMEs with strong case prospects and a minimum claim value of £100,000. Funding ranges from £100,000 to £5 million over 6 to 36 months.

Single-Case Funding

This type involves interest rates from 25% to 40% of the claim proceeds and decision times of 2 to 4 weeks. Used for breach of contract claims, IP disputes, or professional negligence cases, such as tech companies pursuing patent infringements.

Portfolio Funding

Businesses with multiple cases bundled together can access funds from £500,000 to £10 million for 12 to 48 months.

Portfolio Funding

Portfolio Funding features interest rates of 20% to 35% on successful case proceeds, with a 4 to 6 weeks decision time. Ideal for retail chains in supplier disputes, it requires a comprehensive legal review.

Corporate Funding

Larger enterprises can secure £1 million to £50 million for up to 60 months, leveraging their litigation assets for expansion.

Corporate Funding

Featuring interest rates from 15% to 30% and a rigorous approval process over 4 to 8 weeks, this type suits hospitality groups in property disputes needing expansion capital.

What is Litigation Funding?

Application Processes and Decision Times

The application involves submitting detailed case and financial information, with a legal due diligence assessment. Approval typically takes 2 to 8 weeks, with funds available within 1 to 2 weeks post-approval.

Regulatory and Compliance Requirements

In the UK, litigation funders adhere to the code of conduct by the Association of Litigation Funders, emphasizing ethical conduct and transparency.

Borrowing Capacity and Rate Information

Borrowing amounts range from £100,000 to £50 million, influenced by the claim's value and success probability. Rates typically range from 15% to 40%, affected by risk and case duration.

FAQ’S

How much can I borrow with Litigation Funding?
What are the decision times for obtaining Litigation Funding?
What are the interest rates for Litigation Funding?
Who is eligible for Corporate Funding?

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