Litigation funding, also known as third-party litigation funding, is a financial arrangement where a third-party investor provides the necessary capital to a plaintiff or law firm to pursue a legal claim. This is a form of third party financing and legal funding, where outside investors provide investment capital to support litigation. This type of funding is particularly beneficial for those who may not have the financial resources to cover the high costs associated with litigation. In return for their investment, the third-party funder receives a percentage of the settlement or award if the case is successful. One of the key advantages of litigation funding is that it is non-recourse, meaning that if the case is lost, the plaintiff or law firm is not required to repay the investment. These financing arrangements typically involve the funder bearing the risk if the case is unsuccessful. This arrangement allows plaintiffs and law firms to pursue justice without the financial risk typically associated with legal claims.

When pursuing a commercial claim sometimes commercial litigation financing (also known as commercial litigation funding) is needed, it can easily be costlier than thought of in the beginning. With this, the need of capital is almost a certainty to the law firms and the represented companies. If the call of capital goes unanswered the result is a loss for the businesses and the law firms that represent them. We can get funding for all types of cases including but not limited to I.P. (Intellectual Property), Trade Secret Theft, International Arbitration, Complex Business Disputes, and Class Action Lawsuits. All of this can be used for portfolios of litigation or for single case lawsuits. Verum funds litigation by covering various litigation costs, such as expert witness fees, legal fees, and court costs to name a few, which are essential for pursuing a legal claim.

With our commercial litigation funding which is non-recourse (which means if you lose your case, you owe nothing) it is available at almost any stage of litigation. It can be used to pay for legal fees/litigation, acquire working capital, getting the litigation off of the balance sheets, and be used to grow your law firm. By using Verum Funding to help your law firm or business with commercial litigation financing, you are helping by adding value to your business or law firm and in return you can focus on growing your business and or law firm. The funder is repaid by receiving a share of the case proceeds, which are the settlement or judgment amounts obtained in the legal case. The plaintiff or law firm receiving the funding is known as the funded party. This is why so many rely on Verum Funding for their commercial litigation financing.

In the realm of litigation finance, three primary parties play crucial roles: the plaintiff, the law firm, and the litigation funder. The plaintiff is the individual or organization that initiates the legal claim, seeking justice or compensation for a grievance. The law firm represents the plaintiff, providing legal counsel and expertise throughout the litigation process. The litigation funder, on the other hand, is the third-party investor who provides the financial resources needed to cover litigation expenses. This arrangement is often referred to as party funding.

This collaboration allows the plaintiff to pursue their legal claim without bearing the financial burden, while the law firm can focus on delivering the best possible legal representation. In this context, the plaintiff or law firm is considered the funded party, and funders may act as passive investors who do not participate in strategic or case-level decisions. The litigation funder assumes the financial risk, making it a mutually beneficial arrangement for all parties involved.

Litigation funding provides the financial resources to the firm, enabling the firm to pursue legal claims without facing prohibitive cost and helping by leveling the playing field in the legal system. Additionally, litigation funders provide clients with not only financial resources but also access to a network of legal, economic, and enforcement experts to support them throughout the litigation process.

Stages in the Litigation Process

The litigation process in commercial cases unfolds through several distinct stages, each presenting its own set of challenges and expenses. It typically begins with an initial investigation and the filing of pleadings, followed by the discovery phase, where parties exchange information and gather evidence. Expert discovery may be required in more complex cases, leading up to pre-trial motions and preparations. The trial itself can be lengthy and resource-intensive, and even after a verdict, the appeals process may add further time and cost. Throughout each stage, legal fees and other litigation costs can quickly accumulate, making it essential to have a skilled legal team and a well-developed litigation strategy. Litigation funding provides crucial support at every step, ensuring that parties have the resources needed to advance their case and respond effectively to the demands of the litigation process.

Business Litigation Financing Options

When it comes to financing commercial litigation, businesses and individuals have a range of options to consider. Traditional methods, such as bank loans or lines of credit, often require collateral and add to a company’s debt load. In contrast, litigation funding offers a non-recourse alternative, meaning repayment is only required if the legal claim is successful. Litigation funders evaluate the merits of the case and provide funding to cover legal fees, expert costs, and other litigation expenses, assuming the financial risk themselves. This approach to business litigation financing is especially attractive for high-value claims where the parties may lack the financial resources to pursue litigation to its conclusion. By choosing non-recourse funding, companies and individuals can protect their balance sheets and focus on achieving a favorable outcome without the added pressure of financial risk.

Many litigants depending on their case are looking for commercial litigation funding for all the law fees and on some occasions just a partial funding regardless that there is usually a lot of money that is on the line.

Commercial litigation financing is an attractive option for many businesses and law firms. If there is cash due to the law firm or business you do not want to leave it on the table, especially when it is possible to go after claims without the cost and risk of using your own and or law firms’ money. It also gives the ability to have working capital and gives the firm considerably more access to expert litigators. It also gives the ability for many attorneys to take on cases that they would not usually be able to, even though the claims are great but due to needed capital they are not able to do so. Litigation funding provides financial assistance to help law firms and businesses pursue meritorious claims.

Commercial litigation funding investments can alleviate financial burdens and enhance profitability by eliminating legal expenses and providing valuable insights during litigation.

It also allows litigants the ability to pursue complicated case that they might not be able to afford if they did not have commercial litigation financing. Litigation funders can fund lawsuits that might otherwise be too costly to pursue. It can help with the ability to hire expert witnesses, reducing the risk of premature settlement, and the relief from running out of capital during litigation. It can also help many businesses avoid using their capital that could be used as working capital for the business during the litigation. If you have any of these problems then Verum Funding could have the ability to help you with commercial litigation funding.

Commercial litigation funding investments can alleviate financial burdens and enhance profitability by eliminating legal expenses and providing valuable insights during litigation.

It also allows litigants the ability to pursue complicated case that they might not be able to afford if they did not have commercial litigation financing. It can help with the ability to hire expert witnesses, reducing the risk of premature settlement, and the relief from running out of capital during litigation. It can also help many businesses avoid using their capital that could be used as working capital for the business during the litigation. If you have any of these problems then Verum Funding could have the ability to help you with commercial litigation funding.

Litigation Funding Agreement

A litigation funding agreement is a critical document that outlines the terms and conditions of the funding arrangement between the plaintiff, law firm, and litigation funder. Litigation funding agreements are typically confidential, reflecting the sensitive nature of the information involved. These agreements often specify the funder’s rights regarding settlement agreements, including the ability to review or approve any proposed resolution reached through mediation or negotiation. They may also address other strategic decisions in the litigation process, such as whether to settle, withdraw a claim, or file an appeal, with such decisions usually requiring the client’s consent. This contract specifies the amount of funding provided, the percentage of the settlement or award that the litigation funder will receive, and the repayment terms. Additionally, the agreement may detail the litigation funder’s involvement in the litigation process, such as the right to review and approve settlement offers. This ensures that all parties are clear on their roles and responsibilities, providing a transparent framework for the funding arrangement. By clearly defining these terms, a litigation funding agreement helps to align the interests of the plaintiff, law firm, and litigation funder, facilitating a smooth and cooperative litigation process.

Verum Funding can help clients navigate legal disputes effectively, ensuring they have the financial support needed to pursue justice.

At Verum Funding we care about your success in your lawsuit. After all, since it is non-recourse, we are in this together. So contact us today to get in touch with an underwriter that get you on to the road to success. Help us help you with the security that you need with commercial litigation financing today! Contact us today by calling 434-535-5229, emailing us at or filling out the intake form on this page. So what is stopping you from creating the success that you need in the court room? Call us today and let us help you with your capitol want and needs.

Verum Funding, the litigation funding firm that helps you get the funding that you need!