Litigation funding for consultants

Litigation funding for consultants

As a financial, legal or general business advisor, you provide significant value to your clients if you are aware of the opportunities that litigation funding has to offer.

Litigation funding allows a party to litigate without having to pay the high costs. A professional funder will pay the costs associated with litigation in exchange for a share of the proceeds if the case is won. If the case is not won, the funder is solely responsible for the costs incurred.

Litigation funding allows the often significant litigation costs to be taken off the balance sheet. When a company litigates, its costs are part of regular expenses that come at the expense of profits.

Unfortunately, if the case is won and damages are paid, for example, this income is not part of regular income. It is income “below the line” that does not contribute to profits.

Litigation funding allows lawsuits to be decided on their merits, and not based on which party has deeper pockets or stronger appetite for protracted litigation.

New York Supreme Court Justice Eileen Bransten