How Litigation Funding Increases Revenue, Preserves Capital And De-Risks Litigation

Litigation funding is gaining in popularity among plaintiffs, especially corporate litigants who could fund their own litigation but are looking at litigation funding as a form of project finance. This is because the business community and their legal advisors have begun to see litigation as a project or an asset class—one which they can unlock by using litigation funding.

How can a litigation funder help corporate litigants? It can do so by making litigation:

1. Less risky. Litigation funding can be used to pay legal fees and disbursements, and any adverse costs awards (if the litigation is unsuccessful), all on a non-recourse basis.
2. Less distracting. Litigation funding can allow the company to preserve its own capital for other purposes and to invest in its core business.