LITIGATION FUNDING
What is it?
To a Solicitor funding is often "the A-t-E Policy taken out to protect the claimant against certain costs should the case not have a successful outcome." To an Insurer, funding means "the money provided to a Solicitor or his client in order for a legal action to be purchased or to be run/progressed". Under either definition ULP can help.
How can ULP help?
ULP is able and prepared to assist Solicitors in obtaining funding. ULP gets to know who the Funders are, because the Funders introduce themselves to ULP in order to enlist ULP’s assistance in ensuring their loans are adequately backed/supported by A-t-E insurance. The Funders tell ULP what they are looking for.
Who are the Funders?
Funders come in all shapes and sizes; big Banks, small Banks, specialist lenders, venture capitalists, investment trusts and so on.
There are more and more Funders coming in to the ATE arena. At the last count we made, we could identify over two dozen and the number is rising. Equally, it is fair to say that some Funders will change their model and others have dropped (or will drop) out of the market.
What types of funding are available?
Historically, funding has been virtually exclusively for personal injury cases. That is now changing. Historically, too, most funding was made to the claimant via a regulated loan agreement. Again that is changing. Funding today is typically made to the Solicitor’s practice and can be for case acquisition, work in progress and/or disbursements. It might also be linked to Before-the-Event insured cases as opposed to After-the-Event insured cases, or it might for example be specifically for buying in medical reports. Some Funders operate a mix and match approach, others prefer a less bespoke approach.
It is now possible to arrange funding on a case specific basis and for most if not all types of litigation, in other words not just personal injury. The size of the loan need not be a constraint either.
Helpful advice and assistance
ULP does not give formal advice to Solicitors as to which Funder or Funders might be suitable to Solicitors or their clients, but ULP can give guidance and can open doors where necessary. ULP knows which Funders are most likely to be suitable for all the permutations of funding requirements (categories, models and levels). Like the A-t-E market, the market for funding is evolving rapidly.
ULP does not seek to be paid by either the Solicitor or the Funder for providing this service. Nor will ULP receive a commission on any monies lent to a Solicitor or his client.
For more information or an in-depth discussion, why not give us a call or contact us.
