Four Fundamental Benefits Of Litigation Funding In Personal Injury Lawsuits

Litigation funding typically occurs in two general areas:

  • Lawsuits involving businesses, and
  • Lawsuits involving individuals.

It should never be confused with that of a loan. It’s a non-recourse funding where any money you receive is yours to keep irrespective of the outcomes of your case.

Below, we have come up with a few fundamental benefits of third-party funding in personal injury lawsuits. If you are struggling to make ends meet in your current legal budget, go through the points without any further ado.

1.       Promoting an approach to justice

Third party funding in personal injury claims helps the disadvantaged gain an easy access to the civil justice system.

Personal injury lawsuits cost a lot of money. Most individuals cannot afford to outweigh their defendants and other insurance companies.

It is for this very reason, most of them cannot receive or secure justice without financial help even when they’ve suffered injuries as a result of negligence on somebody else’s part.

Third party funding gives them a welcome assistance in this aspect especially, the ones without jobs and no health insurance. Without this type of funding, many plaintiffs would not be able to secure a just result as they would not be able to see through their claims till the end. 

2.       Proper management of financial risks

Third-party litigation funding provides the society with a systematic way of managing and diversifying the risks and costs of lawsuits in the same way an insurance helps in managing and diversifying risks and costs of property damage or healthcare.

In other words, litigation funding transfers the risks and costs from those harmed or injured by better-funded opponents, onto the funder who can help to manage the risks and costs of the lawsuit on behalf of the plaintiff. That is because if you win, the funder receives a certain percentage of your claim. But if you lose, s/he receives nothing.

3.       Protecting the general public

Personal injury litigation funding helps a common man or woman secure justice from financially powerful insurance companies fighting against an average individual’s case.

In contrast to commercial lawsuit funding, personal injury lawsuit finances focus strongly on securing justice or righting the wrong. Commercial litigation, on the other hand, is purely about money and the marketplace.

Thus, personal injury finances help a lot in changing the status quo of individuals living from paycheck to paycheck (or the ones living without a paycheck) who must go to the court against mammoth insurance companies, particularly the ones who are proficient defendants in this regard.

4.       Increased efficiency

Litigation funding can help to reduce delays, time, and costs of lawsuits.

When defendants come to know of the fact that the plaintiff has secured himself/herself litigation funding, most of them become more inclined to settle. They become aware that they won’t be able to win by delaying the process.  

Final word

If you are looking for the best litigation funding in the UK market, don’t forget to pursue options. Just because your application’s acknowledged by a company doesn’t mean there are no better options out there. 


Litigation can be a risky and expensive process. The demand for third-party funding is therefore on the rise.

While going for alternative funding, it’s important that you choose the right option in the market before embarking on the process. The below tips can help.

1.       Consult with your lawyer

This may seem a bit too obvious and simple on the hindsight, but a little bit of investment of money and time with a legal professional at the start can do you a whole lot of good in the long run.

Litigation funders in the market vary according to their size and aptitude on the basis of risks and expenses. Your lawyer, being a legal expert, should have an in-depth knowledge of these things and can easily direct you on to the right path. 

2.       Know your wants

Prepare yourself thoroughly before submitting your application.

Most funders like to see a detailed breakdown of fees. An application coming with a total cost figure would not be as successful as the one coming with a detailed breakdown.

Therefore, prepare yourself for knowing exactly how much you need at every stage of the litigation.

3.       Look for options

The UK litigation funding market is always on the rise. Your options are definitely not limited as a result of it. In fact, today we have funders specializing in certain types of claims in particular sectors of the market.

Remember, you’re the customer. Just because you’ve had one application successful doesn’t mean there’s no better option out there. Do some research, explore the market and then only take the leap of faith. 

4.       Cooperate

Litigation may turn out to be a time-pressured exercise. Third party funding may even add to that pressure.

So make sure you respond, answer, advise, and deal with all enquires on time and in a helpful manner.

Yes, it’s true that you are the customer here, but at the same time, you must also realize that they’re providing you with a service or investment that can help you nullify all your financial problems in the dire time of your need. 

5.       In case of unsuccessful applications, request feedback

If your application’s unsuccessful, ask for the reason.

Just because it’s denied by a funder, doesn’t mean another will follow suit. Any feedback you gain in this regard will only help in strengthening your future applications in case you wish to make.

6.       Limit your exposure

The better your odds of success, the better chances you have of getting good funding offers.

Be creative in coming up with ways that can contribute to increasing your prospects of success. Analyze your risks and try to deal with them head-on. Highlight all of these problems to the funder and detail ways as to how you can address them.

These steps can help you secure funding offer at the best rates.


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