The UK has a fair and transparent legal system which, crucially, is accessible to all. Of course, legal fees can be expensive, but litigation funding is available to anyone who feels they need to pursue a litigation claim, so it’s not a privilege reserved for the wealthy.
What is Litigation Funding?
Simply put, litigation funding is third-party financial support provided by an external investor to a claimant who needs the funding in order to cover the costs of a legal claim. In order to start any litigation funding application, it’s wise to get expert legal help on UK litigation funding as offered by specialists in UK litigation funding.
The Benefits
The principal benefit of litigation funding is that it allows claimants to pursue a claim rather than be held back by a lack of finances. For example, small businesses can access litigation funding to pursue a potentially meritorious claim that they wouldn’t be able to afford otherwise.
Protection of Company Assets
In addition to this, litigation funding is also important because it allows small businesses to keep a hold of their existing capital and assets, rather than use them all up on pursuing a legal claim. The company’s working capital, therefore, can continue to be used for growth and operations.
Debt Free
Lastly, it’s important to note that litigation funding is treated as an asset to a company’s profit and loss accounts – that is to say, it is not a debt held by the company.