This can be difficult and other options will need to be explored. Outside of traditional lending a specialised loan facilities for legal proceedings can be considered.
A litigation loan, also known as litigation funding or litigation finance, is a financial arrangement where a third-party funder provides funding to cover the costs associated with litigation in exchange for a portion of any financial recovery obtained through the litigation.
Here’s how it typically works:
- The litigation funder agrees to provide funds to cover legal fees, court costs, expert witness fees, and other expenses associated with pursuing a legal claim.
- In exchange for providing funding, the litigation funder typically receives a portion of any financial recovery obtained through the litigation. This could be a percentage of the damages awarded by the court or a percentage of any settlement reached between the parties.
Litigation funding can be particularly useful for individuals or businesses who may not have the financial resources to pursue a legal claim on their own. It allows them to access the legal system and seek redress for their grievances without having to bear the full financial burden of litigation upfront.
However, it’s important to carefully consider the terms of any litigation funding arrangement, as the costs associated with litigation finance can be significant. Additionally, not all cases may be suitable for litigation funding, so it’s advisable to seek legal advice and explore all available options before entering into such an arrangement.
