The financial burden that comes with legal battles can be draining. You have to pay court costs, expert witness fees, and attorney fees on top of your personal expenses. When added up, these expenses can stress you out.
Litigation lending services can provide you with enough funding to help you overcome financial difficulties. Before applying for financial assistance from litigation funding firms, let’s dive into the factors you need to consider.
What Is Litigation Funding?
Litigation funding is financial support that you only pay based on the outcome of your case. You can use the money for litigation expenses, daily living costs, and other financial duties while your case is ongoing. Its non-recourse nature sets it apart from a traditional loan. Aside from personal cases, litigation funders can also cover commercial disputes through commercial litigation finance.
Important Consideration When Getting Litigation Funding
Here’s what you need to know before applying for legal financing:
1. The kind of case you have
Workplace injuries, medical malpractice claims, and personal injury cases are all available for litigation funding. If your case falls into these categories, you may apply for funding based on the company’s requirements.
Assess your case to see if it aligns with the requirements of the funding company. It would also help if you discuss your case with a lawyer to know if their services fit your needs.
2. Case merits and the potential compensation
Litigation funders will look at your case and assess if it has strong claims worth funding. They need to determine the role that the parties involved in the case, the damages, liabilities, causation, and how likely the case will win. Discuss this consideration with your lawyer to know your chances of winning the case and the compensation you’ll likely receive.
3. Reputation and experience of the company
The litigation funding industry is still a relatively new but growing market. Research companies online and look for a few with a proven track record, excellent feedback from their previous clients, and adherence to fair terms and conditions.
Narrow your choices by asking your family and friends with previous legal cases for referrals. They might know a company or two who can help you. You can even ask some law firms if they have lawyers who can connect you with potential funders.
Choose about three funding firms from the array of choices you have. Set a meeting with each one and take note of their current offers, services, and contract terms. Ensure the funding firm addresses your concerns and gives you all the important information.
4. The type of funding needed for your case
Funding for a litigation process usually has three kinds:
- Single-case funding: The one-off, non-recourse funding of a legal claim in exchange for an agreed return. The funder will only get something if the case wins.
- Portfolio funding: The type of funding that covers multiple law firm cases. More diverse cases are covered with this kind of funding.
- Law firm lending: The funder loans the firm a huge amount of money to grow the business and handle more cases.
Choose the type of funding that your case needs. You can also include the amount of funds needed, as the funders may offer their clients a minimum and maximum amount.
5. The legal funding requirements
Familiarize yourself with the documents that the funding firm may need from you, such as a copy of the legal complaint, the budget outlining the expected litigation costs, and papers supporting your financial standing. Talk to your lawyer about the full scope of documents you must prepare. They will give you all the necessary information about these documents.
6. The funding agreement terms
Remember that litigation funding is not your usual loan, that’s why you have to work with a company that has an ethical work style. Read the contract thoroughly before even putting a single signature. Ask your lawyer if you’re confused with specific terms or parts of the contract.
7. The timeline of the case
Consult your lawyer about the funding your case needs. They can suggest one, depending on how long your case lasts. For instance, you may need single-case funding if your case is expected to last for just a short amount of time.
Working with Reputable Litigation Funding Firms for Your Case
Facing a legal battle can put a strain on your financial resources. Don’t let your pocket run dry as you fight for your rights by working with a litigation funding firm. They will help you wade through the legal system and give you the necessary guidance and support.
With litigation finance, you’re confident that you can still fulfill your financial obligations and pay for litigation costs as your case goes on. These firms will be with you during your legal battles to support you.
Final Thoughts
Litigation finance provides the financial help you need at the height of legal proceedings. You must consider factors like the timeline and merit of your case before getting it from a litigation funding firm or your trusted litigation funder. Also, contact your legal counsel first to discuss your case and if litigation funding suits your case.