{"id":4604,"date":"2022-07-01T06:42:32","date_gmt":"2022-07-01T05:42:32","guid":{"rendered":"https:\/\/legalvision.co.uk\/?p=4604"},"modified":"2024-05-16T06:56:43","modified_gmt":"2024-05-16T05:56:43","slug":"litigation-funder","status":"publish","type":"post","link":"https:\/\/legalvision.co.uk\/disputes-litigation\/litigation-funder\/","title":{"rendered":"How Can I Find a Litigation Funder in England?"},"content":{"rendered":"\n

As a business entering into a legal dispute, you may choose to resort to litigation if alternative dispute resolution methods<\/a>, such as mediation<\/a>, have not worked. Litigation can be lucrative if you are successful, as you may receive significant damages and the losing party may be made to pay your legal costs. Funding litigation, however, can be a significant burden and could go so far as to interrupt your business operations. As a result, you may wish to use a litigation funder to help cover your early costs.<\/p>\n\n\n\n

This article will elaborate on what a litigation funder is, and explain the process of securing a litigation funder. <\/p>\n\n\n\n

What is a Litigation Funder?<\/h2>\n\n\n\n

Put simply, a litigation funder is a third-party who provides capital to your business. This allows you to cover your costs as part of any legal claims<\/a> that you bring against another party. In return, the litigation funder will want a portion of the damages or compensation that you receive if you are successful. This process is sometimes also known as litigation finance or third-party funding.\u00a0<\/p>\n\n\n\n

Why Use a Litigation Funder?<\/h2>\n\n\n\n

Litigation funding can be useful for a wide range of businesses. For starters, some businesses may not be able to afford to pursue the legal claim at all without outside capital. Litigation funding, however, is also often used by businesses that do have the ability to fund their own litigation<\/a>. This is for a number of reasons.\u00a0<\/p>\n\n\n\n

First, it can be useful for the party bringing the case to share the risk of failure with any investors in the claim. Even though the claimant will have to pay the funder a share of the proceeds, it can still be preferable for risk averse businesses to use a funder. <\/p>\n\n\n\n

Second, many companies have a limited ‘legal budget’ to pursue claims in court. Using a funder will allow the claimant to bring more claims without their internal budget constraining them. <\/p>\n\n\n\n

Further, using a litigation funder can allow the claimant business to take the cost of the litigation off of their balance sheet. This is often achieved through combining litigation funding with various types of insurance, so as to nullify the chance of loss to the claimant. Taking this approach is commercially convenient, as a healthy balance sheet is useful for a variety of reasons.<\/p>\n\n\n\n\n\n Continue reading this article below the form\n <\/i>\n<\/a>\n

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