Third Party Funding in 150 words (or how to persuade a lender to invest in your case)
3rd November 2015
A third party funding application has a twofold purpose. The first is to set out the client’s requirements, whilst the second is to enable a litigation funder to consider whether to make an investment in the claim. As such, the application must tell ‘the story’ of the case, in addition to the providing a detailed budget, timetable and the key claim documentation.
Generally speaking, a successful application will demonstrate four key characteristics to the litigation funder:
- That the claim has legal merit (60% prospects of success or better)
- That there are no issues with recoverability. The other side must be assessed to have the means to pay, and funders will want confirmation that you believe full recovery is likely
- That the claim is capable of commercial settlement
- The cost of funding a claim must be proportionate to the ultimate claim value. A ratio of 1:8 (investment to damages) is a good benchmark
Tick all these boxes and you will probably be in luck, with QLP able to provide easy access to a third party funding market, as well as guiding you through the application process. Just give us a call.