The process of securing litigation funding can be a daunting experience if you’re unfamiliar with legal or funding procedures. Acquiring litigation funding, though, is a necessary step for many people going through legal processes who cannot afford its costs. The importance of litigation funding goes beyond covering legal fees, too. For some folks, litigation funding enables them to afford living or medical expenses for the month.
Litigation funders don’t simply lend their finances to whoever. When applying for funding for your legal processes, there are some guidelines that may help you make a solid case for yourself. Discover the things that most litigation funders look for to increase your odds of getting the financial resources you need.
A Nondisclosure and Confidentiality Agreement
Funders will assess your case before they commit to funding it. You should always get a nondisclosure and confidentiality agreement to protect your legal information from being shared or discovered. Clients are not required to share any documents that they cannot legally protect with the prospective funder.
The Diligence Process
The diligence process helps funders determine whether they would like to support you during your legal case. You can make the diligence process more seamless for your prospective funder (and make a better impression) by having the following materials readily available for them.
What You’ll Need for the Diligence Process
- A thorough memo that includes evidence supporting your claim of who was liable for accident and damages.
- An outline of the types of damages incurred during the accident and the treatment, repairs, and replacements necessary to mend such damages.
- Include any risks within your case. Transparency about any risks involved in funding your case is just one of the things that most litigation funders look for and prefer, rather than learning about the risks after further evaluation.
Consideration for Returns
If you’re the plaintiff in a legal case, your legal funding will most likely be non-recourse, meaning your funder will only recoup finances if you acquire a settlement. That said, you should be aware that your funder will receive their percentage of what you recover from your legal case before you do. Your legal team and any medical facilities that treated you will also receive their payments from your recovery before you finally acquire the leftover amount of your settlement.