What Documents Do Litigation Funders Need?

Understanding how litigation funders and legal funding works is essential before exploring specialized funding options for specific practice areas.

Preparing a well-organised, well-presented submission to a litigation funder significantly increases the efficiency of the due diligence process — and often improves the quality of the terms offered. Yet many first-time applicants are unsure exactly what materials funders expect to see and at what stage.

This article sets out what litigation funders in the UK typically look for at the preliminary and due diligence stages, why each category of document matters, and how to make your submission as effective as possible.

Two stages, two document requirements

The documentation required breaks down into two phases: the preliminary or initial stage, and the detailed due diligence stage. The level of detail required increases as the process progresses. For a full overview of how these stages fit together, see our guide on how commercial litigation funding works in the UK.

Stage 1: Initial submission documents

At the initial stage, the funder's goal is to form a preliminary view of whether the matter warrants further investigation. You do not need to provide every available document at this stage. What you do need to provide is enough information for the funder to assess the basic commercial proposition.

A case summary or position paper

A clear, concise written summary of the claim is the most important document at this stage. This should cover:

• The factual background: what happened, who is involved, and what the dispute is about
• The legal basis of the claim: the causes of action and the key legal issues
• The quantum: how the loss is calculated and what the claim is worth
• The defendant: who they are, their financial position if known, and why enforcement is realistic
• The stage of proceedings: whether pre-action, issued, or at appeal
• The legal team: who is instructed and any relevant experience in this type of claim

This document does not need to be lengthy. A focused five to ten page summary from a knowledgeable legal team is often more useful than an extensive document dump at the initial stage.

Legal advice or counsel's opinion (if available)

Where a legal opinion, counsel's advice, or detailed solicitor's analysis exists, sharing it with the funder at the initial stage accelerates the process considerably. This demonstrates that the claim has been properly reviewed and gives the funder a professional assessment to work from.

If no formal opinion has been obtained at this stage, a detailed internal analysis from the instructed solicitor is a reasonable substitute.

Quantum analysis or loss assessment

Even a preliminary quantification of the claim is helpful. If a formal quantum report has been prepared — by an expert, by counsel, or by the solicitor — it should be shared. If not, a description of the basis of the claim and an estimate of the likely range of recovery is useful.

Stage 2: Due diligence documents

If the funder decides to proceed to detailed due diligence, a more complete set of materials will be required. What follows covers the principal categories.

Core legal documents

Depending on the stage of the proceedings, this will include some or all of the following:

• A letter before action and any response received
• Particulars of claim, defence, and any reply or counterclaim
• Witness statements exchanged (if any)
• Expert reports or jointly appointed expert reports
• Any court orders, directions, or interlocutory judgments
• Correspondence relevant to the claim

Counsel's advice or legal opinions

Any formal written advice from counsel on the merits, quantum, or litigation strategy should be provided. If no formal opinion exists, a detailed written assessment from the instructed solicitor will be requested.

Defendant financial information

The funder will want to understand the financial position of the defendant. This might include:

• Filed accounts or publicly available financial information
• Results of any tracing or asset investigation
• Information about the defendant's ownership structure
• Any security arrangements or charges over the defendant's assets
• Information about any known insolvency proceedings or restructuring

The quality and reliability of this information is often a significant factor in the funder's decision. For more on what funders assess, see our article on what litigation funders look for in a case.

Costs estimate

A realistic, well-prepared estimate of the legal costs for the matter from the current stage through to trial — or to a likely resolution point — is essential. Funders assess the economics of a matter by reference to the likely ratio between costs deployed and expected recovery. A credible costs estimate, prepared by the instructed solicitor, gives the funder the information it needs to model that ratio. For detail on how this ratio affects pricing, see our guide on how much litigation funding costs.

The estimate should cover solicitors' fees, counsel fees, expert fees, court fees, and any other anticipated disbursements. It should identify key stages and the associated costs for each.

ATE insurance information

If after-the-event insurance has already been obtained or is being sought, the funder will want to know about it. If not, the funder will typically want to discuss the adverse costs risk and how it is to be addressed as part of the overall structure.

Identity and authority documentation

The funder will need to satisfy itself as to the identity of the claimant and, where relevant, that the person entering into the funding agreement has authority to do so on behalf of the claimant entity. For insolvency cases, the relevant appointment documents will also be required.

The Data Room: A Practical Checklist

When funders diligence a case, they work from a data room — a single, well-organised set of materials that answers the key questions in one place. Use the checklist below as the target state for your submission. Not every item is required for every case, but a data room that covers most of the list is meaningfully more likely to convert to a funding offer.

Case narrative and legal analysis

• Five to ten page case summary covering facts, legal basis, quantum, defendant and stage.
• Counsel's opinion, or the instructed solicitor's written merits analysis.
• Any earlier legal advice relevant to the claim.

Core legal documents

• Letter before action and any response.
• Pleadings — particulars of claim, defence, reply, any counterclaim.
• Key underlying contracts, agreements, or statutory materials.
• Witness statements exchanged to date, if any.
• Expert reports (own and jointly appointed).
• Court orders, directions and any interlocutory judgments.

Quantum and economics

• Quantum model or loss report, with assumptions and ranges.
• Costs budget from current stage through to trial, broken down by phase.
• Details of any existing funding, security or fee arrangements.

Defendant and enforcement

• Filed accounts or public financial information for the defendant.
• Any asset tracing or investigation reports.
• Ownership structure and information on any charges over assets.
• Notes on any known insolvency or restructuring proceedings.
• Analysis of enforcement route and relevant jurisdictions.

Risk transfer

• Existing After-the-Event insurance policy or broker's indication.
• Any capital protection insurance considered or in place.

Identity, authority and KYC

• Identity documents for the claimant.
• For corporate claimants: incorporation details and authorisation to enter into the funding.
• For insolvency cases: appointment documents for the office-holder.

For a step-by-step view of how funders assess these materials, see our guide on what litigation funders look for, which covers the due diligence stages, red flags that stop funding, and how to get a case funding-ready.

How to make your submission effective

A few practical points that consistently improve the quality of funding applications:

• Be organised. Funders receive a high volume of submissions. A well-labelled, logically structured set of documents is easier to review and creates a better first impression. Disorganised or incomplete submissions take longer to review and may result in a less detailed preliminary response.
• Be honest about weaknesses. Every case has weaknesses. A submission that identifies and addresses the key risks — rather than papering over them — demonstrates that the claimant and their legal team have thought rigorously about the case. Funders are experienced enough to identify issues themselves; it is better to address them proactively.
• Provide the legal team's contact details. Funders will want to engage directly with the instructed solicitors during due diligence. Making introductions early and ensuring the legal team is engaged in the process is important.
• Do not over-present. A focused, well-evidenced submission of the key materials is more effective than sending every document in existence. The funder can ask for additional materials as the due diligence progresses.

To check whether your matter is likely to meet funder criteria, see our guide on whether a claim is suitable for litigation funding. If you are comparing funders, our article on how to choose between litigation funders may also be useful.