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. In order to get these services, there are various reasons that can be used. For instance, if you are unable to raise money for the service, the legal practitioners can opt for this type of funding. On the other hand, the services providers may suggest to use it instead of you paying for the service.
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. On the other hand, a good number of people fail to differentiate Litigation insurance from funding. These Services appear similar from the general outlook though they are different in functionality and principles.
During funding, a non-recourse financing for part or all the expenses is provided by a third-party service provider. Under legal financing, you will get funds to cater for expenses while awaiting court approval and after that you share the benefits with the funder as you had agreed earlier on. On the contrary, litigation insurance is concerned with legal expenses. In addition, it is the insurance service provider who determines the sharing ratio. In a funding context, the funder bears the costs alone in case the claim fails.
This type of legal financing comes with certain benefits according to Bentham IMF. The first benefit is that it is a business opportunity on its own. Through this funding, you are able to get money to sustain you throughout the court process. Many people have not been able to follow claims proceedings in courts due to huge expenses involved. However, due to these services, it becomes easy for a person to follow the claim until the end.
This comes with high returns on the investment you make. It also comes with higher stakes benefits. 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. These Bentham IMF funding services also come with value maximization.
The lawyers from these companies evaluate your claims and identify areas that can be used to maximize the value of your claim. These services also come with accounting benefits.
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. In order to get the best, there are some aspects you need to consider. Third party funding that the service provide covers, the skills, and expertise of the company lawyers and reputation are some of the consideration factors.