Do I need Litigation Finance?
Litigation finance offers clients with a strong case the option to have a third-party funder pay the costs of pursuing their legal claim. In return for their funding, the funder receives a share of any recovery obtained through settlement or adjudication.
Why might I need litigation finance?
There are many situations on which litigation finance can be a good option to reduce the financial risk associated with the case. Because ligation finance is usually procured on a ‘no win, no fee’ basis, you can fund your claim no mater your financial situation. One of the most common reasons for seeking litigation finance is that your claim involves taking on a much larger entity than yours, for example, a small business might have a claim against a much larger one. In this situation without litigation funding, the smaller business might not be able to fund a claim against the larger business. It might also be that the reason for the claim has left you financial ruined. You might find yourself financially ruined and still need to bring a claim to court, here litigation finance could allow you to still make your claim, no matter your financial situation. There are many other reason to use litigation finance, you can find out all of the most common reasons to use litigation finance here.
What can Litigation Finance cover?
You can borrow money through litigation funding to cover the costs of all aspects of your claim. Litigation funding can be used to cover the cost of your legal fees, including your solicitor’s fees. Litigation funding can even be used to fund your living costs while you await the trail and while your claim is being processed.
How much you can borrow will depend in the size of your claim and the potential winnings. For smaller businesses funding usually sits between £250,000 and £2.5m for a claim. However, Kramer Sullivan offers funding as little as £1,000 to support smaller business to fund their claims.
For larger businesses and larger claims funding can go up to £1 billion to finance your claim. You can find out more about how much you can borrow through litigation finance here.
How do I know if I am eligible?
Not all claims will be eligible for litigation finance, so whether or not you are able to get litigation finance will depend upon the strength of your claim. Because third-party funders will only get their money back if the case wins, the third-party funder will need to be confident in the strength of your claim. The size of your claim will also be important to consider as the potential winnings will need to be enough for the funder to get back their investment. You can find out more about what makes a claim strong and whether or not you are likely to be eligible here.
By getting in contact with Kramer Sullivan you can find out whether you are eligible for litigation. Kramer Sullivan has links with many third-party funders and can find the perfect funder for your case.