How litigation funding protects businesses and improves productivity

Defending yourself shouldn’t come at the price of your business. Unfortunately, for many people, a litigation impacts their business significantly. Litigation has a detrimental effect on many aspects of the business, from cashflow to team morale. Consequently, many business owners simply choose not to litigate, for fear of losing their business. But at the same time, they also lose access to justice.

Litigation funding can turn things around, helping you successfully litigate as well as keeping your business operating normally – thriving even.

Litigation finance isn’t just a lifeline for disadvantaged claimants, it’s a tool [for] corporates who have no shortage of their own capital but prefer to finance litigation and arbitration off-balance sheet because it’s simply a more efficient and cost-effective way to manage legal expenses and exposure. The Lawyer

As you can see, litigation funding can remove the burden of a claim as well as providing financial and operational benefits. In this post, we’ll explain more about how it can change and benefit your business, or at the very least, how it can let you carry on doing business as usual.

The benefits of litigation funding

Litigation funding firstly removes monetary concerns, but it also frees up your team and even improves your chances of winning. Here’s how:

Litigation funding can minimise financial impact on companies. Accounting treatment can be improved when a funder is brought on because they will take on the costs of bringing and running the claim. This eliminates ongoing expenses for you, the claimant, to lawyers, barristers and external consultants involved in the claim. This then improves the company’s cashflow, as there is no more impact on your P&L. Cash used in the litigation is now freed up and can be used to grow your business. You can go back to investing in product development, new staff and new markets.

Next, you can free up management time. Instead of having to manage the claim, directors and those at senior level only need to supervise the legal team. With the support and investment of a third-party litigation funder, you can return to running the business normally. You can be reassured that the litigation funder is funding the claim, has confidence in the merits of the claim and the quality of the legal team conducting it. This also returns productivity to other members of your team, as bringing and funding a litigation claim on your own can reach all parts of the business. A litigation funder’s involvement can ensure your team go back to what they were hired to do in the first place.

Restore morale within your company with a litigation funder. Taking on a claim is a stressful experience, for you as an owner, your senior team and the rest of your staff too. The company’s financial position is put under immense pressure, and this can create uncertainty within the business. When your claim is funded, and your team know this, they are less likely to feel worried about the financial implications of litigation. This then allows them to concentrate on their job as normal.

When you take on a litigation funder you have a new sounding board to go to. Alongside your legal team and your senior management team, you have one more party fighting your corner. At Redress Solutions we operate with clarity: if you have any questions about the claim we’ll always give you an honest and straightforward answer. Our accumulated experience and our investment in the claim means our interests are aligned: if you win, we win! You’ll always be working with one of our directors too, rather than an account manager, so you can trust our advice.

Litigation funding puts you on a level playing field with the defendant. Many business owners are playing a game of David vs Goliath, taking on much bigger companies with deeper pockets. Litigation funding helps you to level up. In our experience, once a litigation funder is on board the defendant will take your action much more seriously, as you have the funds and the support to get justice.

When we take a claim on we indemnify you, the claimant, for the defendant’s costs if the claim is lost. This is then backed up with insurance from a high-quality, specialist insurer. We understand the risk that comes with litigation, and our role is not only to fund the claim but also to protect your business. With indemnification we, as the litigation funder, undertake due diligence on the claim, to manage and cover the risk, and the insurer does too.

Business as usual

When the defendant knows you are fully funded, and indemnified for their costs of the claim is lost, they are much more likely to think twice about fighting back. This can then make it easier to reach a compromise and settle the claim, especially if the defendant is unsure about their position or the quality of their legal team. Then you can truly go back to business as usual.

Is litigation impacting your business? Read our guide to litigation funding for business owners.

Need to talk? Get in touch with us, we review all claims within two working days.

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Redress Solutions PLC
Coopers’ Hall,
13 Devonshire Square,
London, EC2M 4TH
United Kingdom
T: +44 (0)20 7495 3900 / 5311

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