Pursuing Legal Claims With Commercial Litigation Funding

Pursuing Legal Claims With Commercial Litigation Funding
Pursuing Legal Claims With Commercial Litigation Funding

Commercial litigation funding, aka litigation finance, is a practice where a third-party investor provides financial support to plaintiffs involved in commercial legal disputes in exchange for a portion of the settlement or judgment amount. It is a way to mitigate the financial risks associated with litigation. It enables parties to pursue their claims without bearing the full burden of legal costs.

In commercial litigation, parties often face substantial expenses. These include attorney fees, expert witness fees, and other costs associated with building and presenting a case. These costs can be a barrier for those seeking justice through the legal system. Commercial litigation funding companies like Omni Bridgeway address this issue by offering financial resources to cover these expenses.

Read on to learn more about litigation finance:

How Litigation Funding Works

1) Application

The plaintiff or commercial law firms representing the plaintiff apply for funding from a litigation finance provider.

The application will include the following:

  • information about the case’s merits
  • potential damages
  • estimated legal costs

2) Evaluation

The litigation funders assess the viability of the case and its potential for success. They consider factors such as:

  • the strength of the legal arguments
  • the financial stability of the defendant
  • the potential recovery amount

3) Funding Agreement

If the litigation finance provider determines that the case has merit, they offer a funding agreement. This agreement outlines the terms. It will include the amount of funding provided and the share of the settlement or judgment the funder will receive in return.

4) Funding Disbursement

Once the funding agreement is accepted, the litigation finance provider disburses the agreed-upon funds to cover legal expenses. These funds are typically non-recourse. That means if the case is lost, the plaintiff is not obligated to repay the funding.

5) Litigation Process

The plaintiff’s legal team proceeds with the litigation process. They will use the provided funds to pay for litigation costs.

6) Settlement or Judgment

If the case is successful and a settlement or judgment is obtained, the funder receives a predetermined share of their litigation finance investments. The remaining amount goes to the plaintiff or the plaintiff’s legal team. For more information on Melbourne commercial lawyers be sure to visit Aandi Lawyers.

Why Should You Use Commercial Litigation Funding

Here are the top reasons to use business litigation financing:

Financial risk mitigation

Pursuing legal claims can be expensive and time-consuming. Funding allows plaintiffs to access the necessary resources without bearing the full financial risk associated with the litigation process.

Access to justice

Commercial litigation finance enables parties with limited financial means to pursue claims they might otherwise be unable to afford.

Improved negotiation power

With funding in place, plaintiffs may have increased leverage during settlement negotiations. They can be able to afford to continue the litigation process if a reasonable settlement offer is not provided.

Cost management

Litigation finance providers typically have expertise in assessing legal costs. They can help manage expenses, ensuring that funds are used efficiently and effectively.

How To Find A Litigation Finance Provider

Here are tips for finding a litigation finance company:

1) Seek referrals and recommendations

Reach out to your professional network. Speak with lawyers from leading law firms or colleagues who may have experience with litigation finance. They may provide recommendations. They may also refer you to reputable litigation finance companies they have worked with.

2) Research online

Besides asking for referrals, you may also conduct an online search for litigation finance companies. Use relevant keywords such as “litigation finance providers” or “third-party funding for lawsuits.” Doing so should provide you with a list of companies specializing in litigation finance.

3) Review directories and listings

Look for directories and listings that specifically focus on litigation finance companies. These directories often provide comprehensive information about various funding providers. These include their contact details, areas of specialization, and client reviews.

Additionally, you can consult with your legal counsel or join legal conferences. You may meet reputable companies financing commercial litigation at these events.

4) Evaluate and compare

Once you have identified potential litigation finance companies, carefully evaluate each company’s

  • track record
  • reputation
  • funding terms
  • expertise in your specific area of litigation

Consider factors such as their experience, financial stability, success rates, and client testimonials.

5) Contact and inquire

Reach out to the litigation finance companies that align with your requirements. Talk to them by phone or email to discuss your case. Ask about their way of providing litigation funding. You should also request detailed information about their terms and conditions. This will help you assess their suitability for your specific needs.

6) Seek legal advice

Before entering into any funding agreement, consult with your legal counsel. They can review the terms and conditions offered by the litigation finance company. They will provide insights on any potential implications. Most importantly, they will help you make an informed decision.


Commercial litigation funding is a complex area. Also, the specific terms and conditions of funding agreements can vary. It is advisable for plaintiffs to carefully review and understand these terms before proceeding.

Moreover, thoroughly research and assess multiple litigation finance companies. Choose the one that best aligns with your specific case, financial needs, and goals.