The legal world is going through a lot of changes. Nowadays, hiring a lawyer doesn’t always have to mean billing you as you move along.
Recently, there has been a distinct surge in third party litigation funding; meaning a financier with no investment in the proceedings, funds the entire cost of pursuing your claim, in return for a fair share of your winnings.
But why go this way? Are there any benefits of travelling the third-party litigation funding route? You bet there are. Here are a few for your reference.
- You have your own money, but you want to spend it somewhere else
Sometimes, even though you have got the money to fund a claim, it makes enough sense to save the amount, and keep your capital for various other uses in your business. After all, why spend your hard-earned revenue when you can have a funder to back your lawsuit and pursue the same for free?
Telling your rivals that you have got third-party financial backing to strengthen your case also helps in sending them a powerful message.
- Your opponent has unlimited funds, and you cannot afford to take them on
If you are claiming as an individual against a large corporation or business, you might be put off at spending your money on taking them to the court.
Large and powerful firms often have bottomless pockets. It can be a bit more like a David and Goliath situation. But, with the aid of litigation funding, there is no need to gamble your own money. You do not have to pay a dime even if the claim is lost. So you see, whatever happens, you will always stay at an advantage.
- You don’t have the funds to go to the court
Lengthy running legal disputes can lead to financial ruins. Litigation funding can be a way out.
It can also help in situations where you lack the funds to take the matter to court even though you know that the odds of winning are in your favour.
- You are a big business looking to offset the risk, time, and litigation cost to a third party
Most of the businesses, be it large or small, benefit from litigation funding. Only a handful number of businesses have the time and resources to pursue their claim on their own.
Litigation funding allows businesses to recover their assets without the risk of losing or paying the opponent’s costs. You can also have a more strategic view of the claims that you might have written off because you did not have the money or management time to pursue them.
- You want to send a message to your opponent
As I said before, opting for litigation funding services plays a huge role in strengthening the prospects of your case. It also sends your opponent a message that you have a strong case in your hands with powerful financial backing for the same.
So that’s basically it. It’s time we bring this discussion to an end. Hope you had an enlightening read.