Uncertainty around Brexit and coronavirus is putting a strain on the bottom line for many businesses. But economic difficulties are also causing a rise in commercial disputes just when finding the money to fund litigation is most difficult.
When cash flow is tight, litigation funding can help you access the legal support your business needs to face disputes and other risks. At Irwin Mitchell, we understand that every organisation is different, and have a range of flexible funding options that we can tailor to your situation.
Here are five ways your business can benefit from using litigation funding.
1. Get More For Your Money
Litigation funding allows you to structure your balance sheets more efficiently. This helps limit exposure to traditional borrowing and reduces debt.
This allows you to progress complex disputes without needing ongoing funding from the business. It can also open up opportunities to select more experienced and specialist legal support, giving you a better chance of success.
Quite simply, this approach can enable you to pursue and win more cases.
2. Focus On What Matters Most
Instead of keeping some money in reserve during the litigation process, litigation funding frees up management time and capital to focus on other areas of your business.
This investment in new business opportunities can help support company growth, or allow your management team to focus on overcoming current challenges.
3. Reduce Risk
Perhaps the most obvious way that litigation funding can reduce risk is that you don’t have to pay a significant amount in legal fees on top damages if you lose a case.
It also arguably gives businesses greater protection, because other firms are less likely to take advantage of them. This is particularly true if a competitor or supplier thinks a business is struggling.
If your company is in financial difficulty but has access to litigation funding, it’s less likely to be the victim of hostile opportunism.
4. Pick Your Battles
Funders do more than relieve corporations of financial risk and cost-cutting pressures. They give valuable case analysis and help businesses choose cases with the strongest potential for timely and favourable settlements.
Without this in-depth due diligence, you may pursue less promising litigation, while leaving cases with strong potential recoveries on the table.
5. Be Flexible
As well as traditional litigation funding, there are also alternate funding options that reduce risk and keep litigation affordable without involving a third party. Each option has its pros and cons depending on your situation, and we’ll help you choose and arrangement that’s right for you.
Alternate funding arrangements are essentially an agreement between client and solicitor about how to pay fees instead of the standard hourly rate model. Examples include conditional fee agreements, discounted conditional fee agreements, or damaged-based agreements.
Our Commercial Litigation and Dispute Resolution Lawyers
We advise and represent businesses of all sizes, across all major industry sectors. Our team will work closely with you to understand the unique risks and opportunities you face, before providing pragmatic advice tailored to your situation.
Learn more about how we can help and the funding options we offer
