Commercial litigation funders are third-party firms or organisations that provide financial support to businesses or individuals involved in commercial disputes or lawsuits.

These funders typically invest in a portion of the costs associated with the litigation, including legal fees and expenses, in exchange for a share of any potential financial recovery or settlement obtained through the lawsuit.

Commercial litigation funding is often sought when businesses or individuals do not have the necessary financial resources to pursue legal action or prefer to mitigate the financial risk associated with litigation.

The use of litigation funders can help level the playing field by providing access to justice for those who may otherwise be unable to afford legal representation.

Commercial litigation funders typically conduct thorough assessments of the merits and potential value of the case before deciding to provide funding.

They may also take into account the financial strength of the opposing party and the likelihood of success in the litigation process.

In return for their investment, commercial litigation funders generally receive a predetermined percentage of the financial recovery or settlement, which is known as a “success fee.”

This fee is typically calculated based on the overall financial outcome of the case and is paid to the litigation funder once the litigation is resolved.

It’s important to note that commercial litigation funding is not available in all jurisdictions and may be subject to specific regulations and ethical considerations. The dispute is considered a valuable asset by a funder.

Additionally, the involvement of a Commercial Litigation Funder can potentially impact the dynamics of the litigation process, including decisions related to settlement negotiations and trial strategy.

Overall, commercial litigation funders play a significant role in providing access to justice and enabling businesses and individuals to pursue their legal rights in commercial disputes.