How to finance commercial litigation action – UK
Finances should not be a barrier to taking forward a viable commercial litigation action, and business owners should be aware of the options available to them to ensure that they can source the right legal financing to meet their needs.
What is Commercial Litigation?
Commercial or corporate litigation refers to legal disputes involving business matters and is a specific area of law, represented by specialist corporate litigators. The services of these litigators are usually costly to secure and, when added to the cost of engaging other experts, consultants and barristers, the price of this sort of legal process can seem prohibitive to many businesses.
Many commercial litigation cases are abandoned purely because businesses cannot make the financial commitment necessary. This means that firms often feel they do not have access to a means of obtaining justice simply because they do not have sufficient liquid assets or access to commercial loans or other finance options.
What is the solution?
Fortunately for those businesses seeking legal redress without putting their company finances on the line, there is a solution in the form of Claims Funding. We can help business with valid disputes to secure the finances necessary to allow them to seek a fair legal outcome. These non-recourse finances, commonly called no-win, no-fee funding solutions, can be used to pay for everything from legal fees to disbursements and the services of consultants.
How can litigation funding help?
Commercial litigation funding can relieve the financial pressure on businesses seeking a successful solution to their commercial dispute. This means that, not only will they be able to engage the services of the right commercial litigators and experts, they will also not feel under undue financial pressure to accept unsuitable out-of-court settlements simply to avoid the full costs of complete court proceedings.
In contrast, non-recourse financial solutions in the commercial litigation action can ensure that businesses have the financial resources to take their claims to a successful conclusion. In turn, this easing of financial pressures can strengthen their commercial claims and maximise any compensation awards.
Offering room to breathe
Taking the financial pressure off businesses can allow owners to make the right decisions as part of the legal process, rather than feeling rushed or forced to make choices which might not result in the best outcome for their business.
It can also prevent corners being cut when it comes to the quality of the litigators and experts employed to support or drive a case forward. In short, securing the right funding solutions in commercial situations can make a huge difference when it comes to ensuring a successful outcome.
Who can receive finance?
Commercial litigation financing is available for all types of businesses, including companies and partnerships in all industries and sectors. They can apply for part-funding or the complete financing necessary to cover the costs of a legal case.
With no-recourse litigation funding, the financing company receives their share of any compensation awarded or a set amount agreed before the case concludes – as long as the case is successful. If not, the funding company does not receive anything and the businesses involved will not face additional pressures if they lose their claim.