As it appeared in the Litigation Finance Journal
We know that Litigation Finance is an excellent tool for individuals or groups who have meritorious litigation that they cannot afford to pursue. But what about businesses looking for new ways to put their limited capital to good use?
Curiam discusses the ways in which businesses can use third-party legal funding to monetize legal assets, transform legal departments into profit centers, and offset the risk and expenditure of pursuing litigation. Using legal funding allows claimants to choose the legal team they want—even if that team doesn’t work on contingency.
Funding lowers risk for businesses and can free up capital that can be applied to recruitment, expansion, or operating expenses. When used in a case already in progress, legal funding affords plaintiffs a stronger bargaining position—making it more difficult for defendants to push through a low-ball settlement offer.
Before seeking funding, it’s important to understand the process and what funders are looking for when vetting cases for potential funding.