Eight questions to ask before choosing a third party funder.
If, having explored all of the retainer options with a client, the conclusion is that a case cannot be pursued without the assistance of a third party, the following questions should be asked:
- What is the funder’s risk appetite and funding criteria? It may be that you can find out very easily whether your client’s case will even be considered.
- What is the application process and how long does it take to receive a decision?
- Who is the funder? How long have they been trading and where does their fund originate from?
- Is the funder regulated in any way or part of a professional body?
- What level of return and/or success fee is the funder looking for upon success and what is this return based on – is it the amount of funding actually used or the amount initially requested?
- What is the proposed ATE insurance arrangements?
- Ask the funder whether you as a law firm are able to seek ATE insurance from a provider that does not charge an up-front premium
- What control does the funder have over the case and on what grounds is the funder able to stop providing funds?
Boost your knowledge and stay up to date with our authoritative Guide.
The Temple Guide to Funding Litigation aims to increase the understanding among litigators, insurance brokers and others in the legal services sector of the range of funding options available. This includes how they work, the pros and cons for firms and their clients and up-to-date information on the key issues relating to litigation funding.
In the Guide you’ll find all you need to know:
- Key considerations when identifying the most appropriate funding options.
- Retainer alternatives – advantages and disadvantages.
- A solicitor’s duty to advise on different methods of funding.
- What’s best for your firm v what’s best for your client.
- Terminology explained – DBA? CFA or DCFA? ATE or BTE?
- Third Party Funding – what to consider and what you should avoid.
- ATE insurance for Commercial litigation and Clinical negligence/Catastrophic injury.
Click here to download the Guide
To find out more about how our funding and ATE insurance provision can help you and your clients please call 01483 577877 or email firstname.lastname@example.org