The UK is fortunate to have a fair, transparent and universally accessible legal system, and litigation funding is an essential part of this. Simply put, litigation funding allows businesses or individuals to pursue a claim against a named third party, should they feel that they have been treated unfairly – or possibly that they have lost out financially – because of a perceived injustice of some type. Litigation cases can cover all kinds of things including contract disputes, property disputes or employment disputes.
What is Litigation Funding?
Sometimes known as third-party funding, litigation funding allows potential claimants to access funding to cover legal procedures and pursue a claim which would have otherwise been unaffordable.
Anyone who feels they wish to pursue a claim is advised to contact a legal expert in litigation funding to find out the most suitable course of action.
Protection of Assets
Additionally, because litigation funding is treated as an asset rather than a debt, small businesses are able to keep a hold of their company’s working capital, rather than be forced to use it all on a legal claim. As a result, the company’s working capital can continue to be used for business operations.
What does the Funding Cover?
Litigation funding covers the majority of costs related to pursuing a litigation claim, such as the legal fees, including specialist legal advisers who can offer personalised counsel. It often also covers expenses associated with pursuing the claim, meaning the business doesn’t suffer financially while the claim progresses.