What do litigation funders want from lawyers? What do lawyers want from funders?
Comparing multiple litigation funders to find the best deal for your dispute has so far been a complex and expensive task.
Up to this point there has been no way to effectively ‘compare the market’ by contacting several funders at once, with lawyers instead needing to make separate funding applications for each provider. Whilst lawyers have been able to work with traditional brokers the commissions ultimately add to the client’s costs of funding.
A lot of effort is needed to get one offer, let alone several so you can make an informed decision about the best terms available for your client.
There are several problems with this system:
The litigation funding market regularly changes, so knowing who is interested in your dispute can be a challenge;
Applying to multiple funders is a lengthy process, requiring lots of duplication of effort. It quickly become a drain on partner hours;
Funders are under no obligation to respond to an application within a set timeframe, so while you get a response within 30 days from funder A, funder C may take several months to provided a response which makes comparisons very difficult.
Having been offered an outline funding agreement, more time is needed to negotiate details. Even then a deal may not be done so the lawyer is forced to go back to market, where terms may now be less favourable.
It isn’t just lawyers who find the application process cumbersome. Litigation funders are in the business of doing finance deals, but often applications from law firms are missing essential detail, which slows and complicates the process further.
In recent months we have been working to develop a new marketplace that sets out to remove the errors, duplication and costs that beset applying for litigation funding.
When we launch FINLEGAL.IO in 2020, it will be the first marketplace that allows lawyers to search multiple litigation funders simultaneously.
For the first time firms will be able to “compare the litigation funding market” in a safe and secure way. Firms will also be able to see exactly which funders are interested in funding their request and the status of the application. This means freeing up lawyers’ time so you can focus on negotiating the best possible terms and getting the case started.
At the same time, funders will be able to receive and assess numerous requests from a wide range of applicants so they can make informed decisions about which investments are best for their portfolio.
There is no doubt that lawyers would benefit from a litigation funding market that was quicker to make decisions. Funders, meanwhile, would like to see funding requests that are better structured rather than going back and forth looking for more detail so they meet demand quickly.
If you are interested in learning more about FINLEGAL.IO please do get in touch. We want to hear from lawyers and funders about what they need from this marketplace to make securing litigation funding less onerous.
