Litigation is also referred to as third-party funding or legal financing. It helps an individual or an organization to adjudicate or litigate without actually having to pay for the proceedings because they are unable to pay for it. A professional third-party funder pays for the expenses associated with the case for a certain share from the proceedings of the funded dispute if the case is won. In case the litigation is unsuccessful the funder takes responsibility to bear the expenses incurred for the proceedings.
It first became popular in Australia in the 1990s and was slowly accepted by other nations too including the US. Litigation funding can be used in personal injury proceedings, advance to small/big businesses who are defendants/plaintiffs in the commercial lawsuit advances to individual plaintiffs and funding the lawyers for various reasons.
Depending on how the funds are being used. It can be said that there are two types of litigation funding:
- Consumer Funding
- Commercial Funding
Consumer financing is also known as plaintiff progresses. This usually consists of small advances to non-corporate lawsuits and individuals who would otherwise have been unable to pursue a legal case. It helps in getting justice to those who have been wronged. The cash received from the funder is used to bear other expenses incurred while fighting the case such as transportation, lodging, etc.
Funding in such cases usually involves both defendant and plaintiff. Commercial funding helps lawyers and small businesses to fight cases of which they would have been unable to bear the costs. Commercial funding has become quite popular these days, and even bigger businesses and law firms look forward to getting their cases funded.
You can apply for litigation funding to LawCash. We are amongst the top financing companies that will help you with funds for your lawsuit.