pre-settlement funding
Six Benefits of Pre-Settlement Funding
October 1, 2018
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litigation finance

Litigation finance, also called litigation funding is the provision of capital to a law firm or claimant in exchange for a portion of the compensation from the successful litigation or arbitration.

The key feature of this finance is that the recourse is generally limited to the proceeds of the litigation settlement. Simply explained, this means the funded party will only pay for the litigation funder when the party settles the case.

It serves as an external source of non-recourse funding

Litigation funding allows companies to pursue valuable claims without making any use of their own capital, thus freeing the resources to support their operations and growth. Most third party funding is non-recourse, which means that the company will not have to pay it back if the settlement is not done.

It’s a helpful step for the business and companies as well

Interestingly, it is not just the claimants who can be benefitted from this. Litigation funding can minimize the financial impact on companies. Accounting treatment can also be improved when a funder is brought on as they will take on the costs of bringing and continuing with the claim. This eliminates ongoing expenses for everyone including the claimant, to lawyers, barristers and external consultants involved in the claim. This then helps to enhance the company’s cashflow, as there is no more impact on the profit and loss account as well. Cash used in the litigation is now freed up and can be used to grow the business. You can go back to investing in inventories, product development, new staff and looking out for new markets.

The capital provided by monetizing a legal claim is often directly applied to the costs of litigation, including investigative fees, attorneys’ fees, expert witness fees and court expenses. To know more about the litigation finance transaction, you can get in touch with Elevant Finance Group LLC which is a forward thinking finance firm. Dial (855) 240-0246 or visit to know more about the funding options.

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