The funding which is generally provided to any person for facing any type of legal issues is known as litigation finance. There are many companies which are providing the litigation financing in the present time. Suppose, you met with an accident and you want to file a case against the person because of whom you became a victim and you don’t have money, so, in that condition you are able to take financial help by the third party like litigation funders.
Benefits of litigation financing
There are many benefits of taking financial help by litigation finances:
- Their funding are non- recourse so if you lose your case, then you don’t need to pay back anything to the lenders.
- They provide support against opponents who are seeking to outspend you.
- Their funding can help you to pay attorneys fees.
- They provide additional analysis of you case by conducting a meeting with experts so that you win the case and they get their money back along with the interest.
Parties involved in litigation finance
There are three parties involved in litigation financing. These are as follows:
Plaintiffs – The first one who is involved in this is the plaintiff. These are the individuals and companies involved in commercial lawsuits that need funds for the litigation expenses, working capital or personal expenses.
Investors – investors fall in the second category involved in the finance. Investing in legal claims creates a new asset; investors are having a very good opportunity to make their money double. The investors first get every detail about the case and then provide funds to the plaintiff. They make sure that the plaintiff wins the case so that they can get the money back.
Attorney and law firms – Attorneys facilitate the case evaluation process by providing investors with the information about the claims. Attorney serves as custodian of funds for all the lawsuits and stakeholders.