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. You may get these services depending on the reason the service provider thinks is necessary. The first reason is when you do not have enough funds to support the process. On the other hand, the services providers may suggest to use it instead of you paying for the service.
During the process, these third-party funders can opt to pay for some expenses or all the cost. After the success of the dispute, the financing company will receive a certain proportion or percentage as agreed. 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.
They are different in that funding is characterized by coverage of full or part of expenses through the use of non-recourse funds. 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. 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. 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.
Due to legal support from funding company lawyers, it becomes hard for a claim to be rejected. Another benefit that comes with Litigation Funding according to Bentham IMF is 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. 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.