Why Do Businesses Use Litigation Funding?
Litigation funding is no longer a tool reserved for the insolvent. Today, FTSE 250 companies, mid-market enterprises, and high-growth businesses use non-recourse legal finance as a strategic capital management tool. The financial logic is simple: why spend your own cash on litigation when specialist investors will do it for you?
What Are the Strategic Benefits for Corporates?
Balance Sheet Protection
Legal costs move off the P&L. EBITDA is preserved, quarterly earnings are unaffected, and the claim is treated as a contingent asset.
Risk Transfer
100% of the financial downside is transferred to the funder. Non-recourse means no repayment obligation if the case loses.
Levelling the Playing Field
Funding enables mid-market companies to sustain multi-year litigation against well-capitalised opponents.
Cross-Border Capability
Funders finance complex multi-jurisdictional disputes, providing capital for proceedings in multiple courts simultaneously.
What Types of Business Disputes Are Funded?
Breach of Contract & Commercial Disputes
The most common funded case type. Contract disputes over unpaid invoices, warranty breaches, or failed joint ventures.
Learn moreIP Enforcement & Patent Disputes
Technology and manufacturing companies enforce patents, trademarks, and trade secrets against infringers.
Learn moreCompetition & Antitrust Claims
Cartel damages follow-on claims where businesses were overcharged by anti-competitive behaviour.
Learn moreProfessional Negligence
Claims against auditors, surveyors, and advisors who caused financial loss through poor professional advice.
Learn moreInternational Arbitration
Cross-border commercial disputes resolved through ICC, LCIA, or ICSID arbitration proceedings.
Learn moreHow Does the Process Work for Businesses?
Initial Case Review
Your legal team submits a case summary. Our experts assess merits, quantum, and defendant solvency within 2–5 business days.
Due Diligence & Funder Matching
We match your case with the right funder based on jurisdiction, case type, and value. Deep diligence takes 2–8 weeks.
Term Sheet & LFA Negotiation
The funder issues a term sheet. We negotiate the Litigation Funding Agreement on your behalf to ensure fair terms.
Capital Deployment
Funding is drawn down in tranches as legal costs arise. Your lawyers invoice the funder directly.
Resolution & Waterfall
On success, proceeds are distributed according to the waterfall: funder capital return, funder success fee, then net proceeds to your business.
For a detailed breakdown of timelines, see our litigation funding timeline guide. To understand the agreement itself, read our litigation funding agreement explainer.
Frequently Asked Questions
Is Your Business Case Suitable for Funding?
Get a confidential case assessment from our litigation funding experts within 48 hours.
