Meanwhile, process finance in the Netherlands is no longer the great unknown among the business community. More and more business owners are making the consideration of not wanting to bear the costs of litigation themselves. A civil suit is always an unwelcome incident for a business owner, one that does not fit into his normal business operations. litigation funding offers an attractive alternative because a litigation financier not only finances the costs of the proceedings, but also takes over the cost risk.
On the other hand, if the judgment is successful, a portion of the proceeds must be remitted to the litigation financier (generally 30% of the net proceeds). Thus, this portion is paid only when revenue is obtained. No cure, no pay. In addition, litigation funding also results in the entrepreneur having to pay much less attention to the handling of his case because the litigation funder also takes over case management.
Only cases with sufficient financial interest are eligible for litigation funding and, in addition, the litigation financier must have the conviction that the case is sufficiently promising and that the claim can actually be paid by the opposing party. Thus, when considering whether a case qualifies for litigation funding, an entrepreneur will first have to assess for himself whether his case meets these criteria. If in doubt, simply submit the case, as we have more than enough expertise to assess it quickly.
Willem Van Nijnanten
