Actually, Litigation Funding commonly referred to as legal financing is a form of third-party funding which enables you to get legal services from different lawyers and legal firms without paying for these services. You may get these services depending on the reason the service provider thinks is necessary. The first reason is when you do not have enough funds to support the process. The funder can also decide to finance your litigation even though you have the ability to do so.
During the process, these third-party funders can opt to pay for some expenses or all the cost. In case the dispute succeeds, the funder gets a certain amount from what the dispute pays. However, many people tend to confuse Litigation Funding with litigation insurance. Although they seem to work in a similar way, there are certain differences.
One of the difference is that under litigation type of financing, the funder provides a non-recourse financing for your claims. This funding is provided as the dispute awaits court approval where sharing of the amount recovered will be done after claim success. However, insurance mostly deals with legal expenses. Additionally, litigation insurance companies are the determinants of sharing proportions after the success of the claim. On the other hand, if the dispute fails, the funder will bear the cost alone.
According to Bentham IMF, Litigation Funding comes with various merits. This service is a viable business opportunity. When you opt for Legal financing, you get access to funds that will drive you throughout the whole process. A good number of people have left their claims midway due to huge cost associated with legal procedures. However, due to these services, it becomes easy for a person to follow the claim until the end.
Due to this fact, you are able to get high ROI. It also comes with higher stakes benefits. According to Bentham, funding high stakes cases comes with huge amounts during settlements.
Funding companies have experienced and skilled lawyers which increases chances of claim success. Another benefit that comes with Litigation Funding according to Bentham IMF is value maximization.
Your claim value is always examined by attorneys from financing companies who identify areas where maximization can be done. Accounting benefits are also enjoyed by legal financing services.
According to Bentham IMF, the benefits to be enjoyed are determined by the funding company you select. There are different companies offering litigation financing services. Through serious considerations, you can be able to know the best service provider. Common consideration factors include legal skills and expertise as well as the type of funding cover provided.