Litigation Funding is basically a type of financing service provided to people who have claims that await court resolution in order to meet the proceeding costs and expenses. There are different reasons as to why this type of funding is used. For instance, if you are unable to raise money for the service, the legal practitioners can opt for this type of funding. The funder can also decide to finance your litigation even though you have the ability to do so.
The main Litigation Funding service providers are third party companies and they can decide to cover all or some of the expenses. However after the dispute resolution, the funder gets a considerable share once the dispute has been successful. However, many people tend to confuse Litigation Funding with litigation insurance. They may seem similar at a glance but they are different in various aspects.
During funding, a non-recourse financing for part or all the expenses is provided by a third-party service provider. This funding is provided as the dispute awaits court approval where sharing of the amount recovered will be done after claim success. On the contrary, litigation insurance is concerned with legal expenses. In addition, it is the insurance service provider who determines the sharing ratio. During funding, if the claim fails, the funder will have to bear the cost alone.
According to Bentham IMF, there are certain advantages that are enjoyed by those who seek Litigation Funding services. 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. Legal procedures and court proceedings are costly which has made many people abandon their claim cases. legal financing helps you to follow the proceedings until the claim succeeds.
Therefore, it becomes easy to get high returns from the investment you have made. It offers more huge monetary benefit when high stake cases are involved. According to Bentham, funding high stakes cases comes with huge amounts during settlements.
Funding companies will provide expert legal support during high stake claims which increases chances of claim success. Another benefit that comes with Litigation Funding according to Bentham IMF is value maximization.
Funding companies lawyers will always examine your claims which enables them maximize the claim benefits. You also benefit from accountability.
However, in order to get these benefits, you need to ensure you have selected the best funding company according to Bentham IMF. These services are offered by different funders. 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.