The Benefits of Commercial Litigation Funding
Litigation Financing is no longer reserved for just plaintiffs who do not have the money to pursue litigation claims. Even well-capitalized businesses can benefit from outside funding. Here are some of the advantages:
Financing allows companies to pursue strong but complicated cases that they might not otherwise be able to afford.
Outside funding gives companies staying power, no matter how much money the defendants devote to defending the claims. In other words, it gives anyone with a strong commercial claim access to justice. And because outside funding entails significant due diligence, only strong claims end up being financed.
Financing allows a companies to choose the lawyers it wants, even if those lawyers cannot work on a fully contingent basis.
A company should not have to choose between its preferred lawyer and its preferred fee structure. But not all lawyers are able to offer fully contingent-fee arrangements. Litigation funding can allow the law firm to get paid as the work is done without exposing the company to ongoing legal expenses.
Financing can free up capital for more productive uses.
Spending money on litigation is not always the best use of capital, especially for a growing business. Funding allows a business to use capital it otherwise would have spent on legal fees and expenses to pursue innovative new strategies, hire new employees, or take any other steps necessary to grow the business.
Financing puts companies in a strong bargaining position for settlement.
In a world where defendants often try to outspend plaintiffs to encourage early and discounted settlements, it is important to have the backing of a litigation funder to allow the company to see the litigation through to its most equitable conclusion.