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A Guide To Hiring Litigation Finance Companies
Legal disputes are often emotionally and financially draining for both businesses and individuals. In most cases, the litigation costs may even exceed the amount in dispute. This is precisely where litigation finance companies come in.
A reputable litigation company will provide the funding needed for legal disputes in exchange for some or all of the proceeds when the case is successful. It gives the means to help make a law firm and the legal system accessible on a broader scale.
But before using this funding option, you must know when to hire litigation funders and how to choose the best provider.
When to Get Litigation Funding
Litigation funding can be a very useful tool in various situations. Here are examples of when you may need to hire a litigation finance firm:
If you’re faced with a difficult legal dispute, litigation funding can provide you with the financial resources necessary to build a strong case. You can use the funds to hire experienced lawyers and other professionals to help you win your case.
Lack of financial resources
Not everyone has enough money to cover litigation costs. A litigation finance company can grant you enough funds to pursue a legal dispute without straining your finances.
Minimize litigation risk
It’s pretty risky to deal with legal disputes, and there’s a possibility that you’ll lose your case. If you work with a litigation finance company, you can minimize the risk of losing everything by sharing the risk with the finance firm.
If you win your case, the litigation finance company gets some of the proceeds. But this can be an excellent tradeoff if it means maximizing your recovery.
Level up the playing field
If you are up against a large corporation, wealthy individual, or any well-funded opponent, litigation funding firms will help you compete on a more equal footing.
6 Factors to Consider When Hiring a Litigation Finance Company
A litigation finance company can be very helpful in various situations. But it is crucial to hire one that will meet your specific needs and provides transparent, fair funding terms.
Here are the most crucial factors to take into consideration when choosing which company to work with:
1. Expertise in your case
An experienced company will have a team of legal and recovery experts who can help ensure the success of your case. These include seasoned litigators, financial experts, economists, and business intelligence professionals.
Find a litigation finance company that has been funding similar cases like yours. Doing so will ensure that they have a deep understanding of the legal issues involved. As a result, they can provide you with proper support and guidance throughout the litigation process.
Omni Bridgeway, for instance, has more than three decades of experience in litigation funding and asset recovery proceedings in different parts of the world. They have been repeatedly hired by banks, multinationals, political risk insurers, and even governmental entities.
2. Fair and transparent terms
Litigation funding agreements can be complex. Therefore, hiring a litigation finance company offering transparent and clear terms is crucial.
Work with a company that clearly explains their interest rates, attorney fees, and other crucial terms. Most importantly, choose one that is very much willing to find the best funding agreement that meets your needs.
3. Excellent track record
The company’s track record is a crucial indicator of how capable they are in identifying promising cases and achieving favorable outcomes.
Choose a litigation finance company with a proven track record of success in funding cases and helping clients reach their goals.
4. Effective communication
The key to a successful relationship with litigation funding firms is effective communication. Look for a company that is transparent, communicative, and responsive. Work with one who can provide you with regular updates about your case’s progress.
5. Strong financial backing
The financial stability of the litigation finance company is critical to ensuring the success of your case. So make sure that you hire a firm that can provide enough commercial litigation funding throughout the course of your case. They must have a robust balance sheet and cash position. Also, they must have superb funding capabilities in various regions.
But aside from having a very strong financial backing, look also for a firm with a history of responsible financial management.
6. Great reputation
The reputation of the litigation finance company in the legal industry is a crucial consideration when deciding who to work with. Choose a firm with a superb reputation for ethical conduct, professionalism, and commitment to helping its clients achieve their goals.
Partner with a litigation finance company that has a broad network. They must have strong relationships with industry experts, leading lawyers and across industries like insurance, finance, and legal.
Litigation finance companies can provide you with enough funding to cover litigation expenses involved in legal commercial disputes. But not all litigation funding providers are created equal. That is why it is very crucial for you to hire a consumer or commercial litigation finance company that meets your specific needs. Consider their expertise, experience, reputation, and funding capabilities.