FINANCE OPTIONS

Litigation Funding for Legal and Compliance Firms

Litigation funding for legal and compliance firms is when a third party provides money to cover legal costs in a case, so the firm doesn't have to pay upfront. This helps firms manage expenses and focus on winning the case. If you're interested in learning more, feel free to reach out!

Apply for business financing up to £500,000

‍

  • Quick and easy application process
  • Loan disbursed within 24 hours
  • No additional charges for early repayment
Apply Now
Cloud

We Like To Keep Things Simple

Match with
150+
Lenders
heart
Expert helpstarstar
200+ Provider
Loans from
£1000
to
£500K

zero hidden fees

underline

What are the benefits of Litigation Funding for Legal and compliance Firms?

Litigation funding for legal and compliance firms provides essential financial support to cover the costs associated with legal disputes. This funding allows firms to pursue cases they might otherwise avoid due to financial constraints, ensuring that clients have access to justice. By alleviating the financial burden, litigation funding also helps firms manage cash flow and mitigate risks associated with lengthy legal processes.
black tick in a green circle
Access to justice
black tick in a green circle
Risk mitigation
black tick in a green circle
Improved cash flow

What are the different types of Litigation Funding for Legal and compliance Firms?

Single Case Funding

Funding provided for a specific legal case, covering litigation costs in exchange for a share of the proceeds.

Single Case Funding

Single case funding involves a third-party funder covering the costs of one case. If the case is won or settled, the funder receives an agreed return. It allows law firms to take on strong cases without financial strain.

Portfolio Funding

Financing multiple cases in a law firm's portfolio, spreading risk across several matters.

Portfolio Funding

Portfolio funding bundles multiple cases, reducing risk for the funder and often lowering the cost of capital for the firm. It offers firms flexibility and financial stability by leveraging several cases' potential outcomes.

Defense Funding

Funding offered to defendants to cover legal expenses, typically in exchange for a set fee or a portion of cost savings.

Defense Funding

Defense funding covers defendants’ legal costs, helping firms or clients manage expenses in high-stakes litigation. Unlike plaintiff funding, returns are usually based on cost savings or fixed fees, not damages awarded.

What is Litigation Funding for Legal and Compliance Firms?

Types of Litigation Funding

Litigation funding for legal and compliance firms comes in several forms, including single-case funding (for a specific lawsuit), portfolio funding (covering multiple cases to spread risk), and defense funding (supporting defendants’ legal costs). Funding is usually non-recourse, meaning the funder only gets paid if the case is successful.

How Litigation Funding Works

A third-party funder provides upfront capital to cover legal costs, such as expert fees and court filings, in exchange for a share of any settlement or judgment. The process involves case evaluation, due diligence, contract negotiation, and ongoing monitoring. If the case is lost, the funder typically receives nothing.

Benefits and Compliance Considerations

Litigation funding helps law firms manage cash flow, take on more cases, and reduce financial risk. However, firms must address compliance issues like confidentiality, privilege protection, and disclosure requirements, which can vary by jurisdiction.

FAQ’S

What is litigation funding for legal and compliance firms?
Who is eligible for litigation funding in the legal and compliance sector?
How does third-party litigation funding benefit compliance firms?
Are there risks for legal and compliance firms using litigation funding?

DIVE DEEPER

Get Funding For your business

Generate offers
Cta image