Litigation funding is a type of financing that allows plaintiffs to receive money to cover the costs of their legal case, in exchange for a portion of any future settlement or verdict.
Why choose litigation funding?
There are many benefits to choosing litigation funding, including:
- You do not have to pay back the money if you lose your case
- The funds can be used to cover the costs of your legal case, including attorney fees, expert witness fees, and other litigation costs
- If you win your case, you will only have to pay back the litigation funder a portion of your settlement or verdict; most litigation funders take between 20% and 40%
- You can continue to pursue your legal case even if you do not have the financial resources to do so on your own
How do I choose a litigation funder?
There are a few things you should keep in mind when choosing a litigation funder, including:
-Reputation: Make sure to choose a reputable and trustworthy litigation funder. There are many ways to research a potential funder, including reading online reviews and speaking with other attorneys who have used their services
-Funding amount: Make sure the litigation funder can provide enough money to cover all of the costs associated with your legal case. You should also find out how much they charge for their services; most litigation funders take between 20% and 40% of any settlement or verdict
-Flexibility: Some litigation funders may be more flexible than others when it comes to repayment. If you lose your case, you may not have to repay the funder anything. Some funders may also be willing to work out a payment plan if you are unable to pay back the full amount all at once
Litigation funding can be a great way to finance your legal case, but it is important to do your research and choose a reputable and trustworthy litigation funder. Keep in mind that there are some risks associated with litigation funding, but these can be mitigated by choosing a flexible and reputable funder.