Organizations finance many aspects of their businesses. Commercial litigation funding (or legal finance) is corporate finance for and dependent on litigation. It recognizes that a meritorious claim is a financial asset with value that can be unlocked as cash by specialist financiers.
For those organizations and persons with limited resources, litigation funding facilitates access to justice ensuring that disputes are resolved based on the merits-and not based on who has the bigger legal budget. Typically, a commercial legal finance provider will pay the fees and expenses associated with the pursuit of a claim or will advance a portion of the value of the pending claim, in exchange for a portion of the recovery of the judgment or award if the matter is successful.
Over the last three decades, organizations and persons around the world have increasingly sought third-party capital to offset the costs of pursuing expensive meritorious litigation. This demand has fueled the growth of the commercial legal finance industry, which is now sufficiently large to require an association of leading commercial legal finance companies to protect the interests of those who rely on their services.