Do You Know The Term Litigation Funding? Discover it here.
Do You Know The Term Litigation Funding? Discover it here.
Do You Know The Term Litigation Funding? Discover it here.

Do You Know The Term Litigation Funding? Discover it here. 

In many personal injury cases, business disputes, car accident injuries, or workers' compensation, attorneys' or litigation costs are often a concern. For this reason, the funding of litigation takes on greater interest every day because it represents a vital tool for those who do not have the necessary financial resources to make claims in demand of their rights and, that under these circumstances, are virtually deprived of the possibility of obtaining justice.


Litigation funding, also known as lawsuit funding, is a specialized professional service that intends to provide the necessary financial resources to defray the costs of legal proceedings in exchange for a fee. This is because to initiate the process, the plaintiffs need to pay professional fees to lawyers, to request and legalize documents, and other costs that they must bear.


Undoubtedly, many people who think they have a valid legal claim also find litigation too costly. Therefore, they decide not to file a lawsuit or end up accepting a faster settlement and a lower offer than they aspired for damages. However, litigation financing offers the following alternatives:

  • Contingent Fees. Many attorneys and law firms only collect their professional fees if the plaintiff recovers compensation for the damages, either through settlement or in court. For this reason, these types of lawyers usually accept cases that they consider valid.
  • Litigation Financing Company. They provide the selected plaintiffs with funds in advance of the lawsuit. This is based on a prior exhaustive analysis of the characteristics of the case and, in particular, of the probability of success of the candidate's claim. The conditions are set in a contract with the rights and obligations of each of the parties. In general, the compensation is associated with the claim's success. If the case is lost, the funder does not even obtain a reimbursement.

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