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. There are different reasons as to why this type of funding is used. For instance, if you are unable to raise money for the service, the legal practitioners can opt for this type of funding. The funder can also decide to finance your litigation even though you have the ability to do so.
The main Litigation Financing service providers are third party companies and they can decide to cover all or some of the expenses. In case the dispute succeeds, the funder gets a certain amount from what the dispute pays. 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. Legal Financing is provided when the dispute is almost approved and sharing is done after the approval. On the contrary, litigation insurance is concerned with legal expenses. Additionally, litigation insurance companies are the determinants of sharing proportions after the success of the claim. In a funding context, the funder bears the costs alone in case the claim fails.
According to Bentham IMF, Litigation Funding comes with various merits. First, it offers an investment 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 legal financing you are enabled to follow your claim proceedings.
Therefore, it becomes easy to get high returns from the investment you have made. It is also beneficial when it comes to high stakes cases. 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. On the other hand, these services come with value maximization according to Bentham IMF. Check out their website at https://www.benthamimf.com/ to get more info.
Your claim value is always examined by attorneys from financing companies who identify areas where maximization can be done. These services also come with accounting benefits.
However, in order to get these benefits, you need to ensure you have selected the best funding company according to Bentham IMF. There are different legal financing service providers but not all who offer quality services. Getting the best should be based on certain considerations. Common consideration factors include legal skills and expertise as well as the type of funding cover provided.
Get more info here: https://en.wikipedia.org/wiki/Litigation_funding