Baker Street Funding provides strategic and tactical litigation funding solutions to law firms, institutional plaintiffs, and corporations. Our team is fully integrated with high-level coverage partners to deliver the best results.
Litigation funding, or lawsuit financing, was almost unheard of not long ago in the U.S. but is now one of the fastest-growing financial industry sectors. Litigation Funding can be explained as a concept where a third party provides the financial resources to allow costly litigation. The litigant obtains all or part of the funding from a private litigation finance company with no direct interest in the case proceedings.
Litigation finance from Baker Street Funding assumes the financial burden of legal claims in exchange for a portion of your pending proceeds to be recovered.
The difficulty of handling tighter legal budgets and the increasing costs of pursuing claims require business people to think differently about litigation. See how you may benefit from financing your litigation:
Avoid being pressured to accept an undervalued settlement if the company's legal cost inflates at an inopportune time or the case is getting delayed.
If your case ends with an unpredictable loss, you will lose no money, as the legal fees have already been paid through litigation finance. And you won't have to pay back the funds.
Take the burden of litigation costs off income statements and balance sheets, and help your company secure the bottom line by funding your case. Financing high profile litigation can sometimes influence the defendant to settle the case.
A significant wake-up call for the defendant would be to realize that you are well-resourced by our investors who have thoroughly reviewed the facts of your case and willing to spend substantial resources on a non-recourse basis.
The litigation finance underwriting process is different from lawsuit financing and a lot more complex. This includes an in-depth analysis of a case or portfolio of cases for attorneys. Normally the due diligence period can take anywhere from a week to two months. The speed of this process is normally dictated by how complex a case is. Once that process is complete, and a contract is dually executed, funds will be distributed to the client.
We will discuss your litigation with you to determine whether it qualifies for funding. Once qualified, we will provide you with a mutual non-disclosure agreement that will protect our communications and case information confidentiality.
Baker Street Funding’s team will then conduct an initial evaluation of your litigation to determine if it can be funded. We typically make a funding proposal decision within 2-14 days from when we receive the preliminary diligence documentation.
Once an initial review is complete, we will normally offer a term sheet to the client. We will then agree with the plaintiff (or attorney) on the financing terms in a term sheet which will ultimately be converted into the funding agreement moving forward.
Once the term sheet is agreed to by both parties, we will complete a final due diligence check and ask the last questions that will need to be answered, which can take up to 30-45 days from our receipt of all requests.
Upon acceptance of your case's investment, we will formulate a financing agreement for you to execute, followed by the release of the capital.
Litigation finance for law firms is a type of legal funding service that is created specifically for contingency fee-based attorneys, representing personal injury plaintiffs and large commercial litigation lawsuits. There are multiple different subsets of funding for lawyers, including case cost financing, voucher funding, attorney lines of credit, and post-settlement fee advances.
Litigation finance assists claimants in obtaining access to justice. It relieves plaintiffs of the need to finance ligation solely from cash flow, which encourages them to use litigation finance to fund meritorious cases that they would otherwise not be able to pursue. High costs and complexity of litigation create a growing demand for legal funding around the U.S. From a cost-benefit perspective, it is usually smart for a claimant to apply their case for review.
A commercial bank loan is based on recourse, forcing the borrower to repay the principal and interest depending on the loan's duration and maturity, regardless of the dispute's outcome. Banking institutions do not have the lawsuit experience to support the merits of the litigation claim or the jurisdiction of the litigation counsel, so they typically require collateral and personal guarantees that would make the loans too risky and the litigation unworkable for the claimant. Because companies perceive litigation rights as an asset to be monetized without additional collateral support, such transactions can are structured as non-recourse investments.
All businesses seeking a minimum of $100,000 in funding can apply. Litigation financing originally became widely known since it allows small businesses to bring and stay in cases that would otherwise prove too expensive to pursue. Corporate litigation generally involves both plaintiff and defendant corporations. While many think of financing for corporate litigation as helping small businesses, large corporations have also started using this type of funding considering the benefits. The funds may be used to pay legal costs and expenses.
In essence, a litigation loan is an advance against the anticipated settlement payment or future fees. While many call these advances "litigation loans," these advances are provided on a non-recourse basis. This means that if the litigation doesn't successfully conclude, you do not need to pay back the advance. Litigation finance companies recognize the risk that the case will not succeed and carefully review all requests to ensure that the plaintiff can win before extending the funding requested amounts. Remember that litigation finance isn't a loan. You don't borrow money from a company that you have to pay back over a given number of years. You sell a part of the potential settlement proceeds (or fees) instead for an exchange of an advance.
Victims of corporate misconduct have received significant compensation through litigation finance programs, which also include settled class action attorney fees, general contractual disputes, arbitration cases, and asset recovery for the benefit of creditors of insolvent businesses and individuals.
As with any financial product, litigation finance does have a downside. The first and most talked about downside would be cost. Non-recourse financing, by nature, is an expensive option. Because of the large amount of risk assumed by the funding company, the required rate of return must be commensurate to that risk. Another downside to litigation funding is the process itself. Analyzing a claim is a laborious and time-consuming process that has no guaranteed successful outcome. There is always the chance that a litigation finance company goes through the long process of due diligence and ultimately decides not to invest into a claim.
Most of the information provided to a litigation finance company will be provided through the plaintiff's counsel. Litigation finance companies will do a deep dive into your case so that we understand the risks and potential outcomes of the litigation. We will do a thorough review of all documentation that has or will be produced in discovery in addition to one or multiple conference calls with both client and counsel. Reputable litigation finance companies like Baker Street Funding will never ask for information or documentation beyond to scope of your attorney's work product so that all information is protected through attorney-client privilege. You should also be aware that documentation and information related to the case that is shared with a litigation funder is protected whether or not the company invests in the dispute.
The financing of litgations can become a great asset to your practice by helping you gain access to case flow to help pay expenses while waiting for a case to settle or go to litigation. While each attorney and firm's situation is different, we have created a bespoke solution for every different type of attorney financing need. We can help you manage your portfolio of cases and provide capital based on that portfolio to help with payroll, office space, and marketing capital, or we can provide case by case specific financing to help cover discovery costs, expert witness costs, administrative expenses, and litigation expenses.
The litigation finance process is different from lawsuit financing and a lot more complex. This includes an in-depth analysis of a case or portfolio of cases (for attorneys). Normally the due diligence period is 60-90 days. The speed of this process is normally dictated by how complex a case is. Once an initial review is complete, we will normally offer a term sheet to the client. If the term sheet is agreed to by both parties, we will then complete a final due diligence check. This can take anywhere from a week to two months. Once that process is complete and a contract is dually executed, funds will be distributed to the client.
The funding provider does not have autonomy over the litigation. We generally remain passive in the disputes we have been investing in. As per the terms of the agreement with legal counsel, the claimant maintains full autonomy overall decision-making. We will not intervene in any way with the relationship between the claimant and his lawyer. In certain jurisdictions across the globe, litigation investment funding programs may enable funders to have a higher degree of participation in the dispute. However, we believe that our job should be to provide additional expertise and financing so that the plaintiff and the law firm can draw on if and when necessary, rather than having some other sort of influence over the proceedings.
Baker Street Funding is a Premier Legal Funding Firm designed to strategically connect select financing opportunities with our extensive network of sophisticated partners and staff. Terms and Conditions Apply. WE RESERVE THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AT ANY TIME WITHOUT NOTICE. To qualify for legal financing, a consumer must be (1) an attorney, or (2) you must be a corporate plaintiff looking for a minimum of $750,000 in litigation funding or a minimum of $50,000 in post-settlement funding, or (3) you must be a personal injury, civil rights or employment/labor law plaintiff with a retained lawyer on contingency; you must be at least 18 years of age, you must have a strong liability claim against a properly insured defendant, you must reside in an eligible state, and meet our underwriting requirements. Contact us to discuss your options. Not all borrowers receive the lowest rate. To qualify for the lowest rate, your attorney must contact Baker Street Funding and meet other conditions. If approved, your actual rate will be listed in your contract. Historical returns do not guarantee future results.
*We do not currently provide financing to plaintiffs looking for lawsuit finance residing in Arizona, Arkansas, Kansas, Maryland, Nevada, Oklahoma, West Virginia, or Washington D.C. We reserve the right to change the states where we provide services to without notice.
Attorney funding is provided throughout all states of the United States. The states we currently provides services to are:
Alabama, Alaska, California, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Louisiana, Maine, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, New Hampshire, New Jersey, New York, North Carolina (Minimum $25K), North Dakota, Ohio, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Texas, Utah, Virginia, Washington, Wisconsin, Wyoming.
We currently fund Colorado at a minimum of $75,000. Case value must be at least $750,000+.
We currently fund North Carolina at a minimum of $25,000. Case value must be at least $250,000+.
d**We not provide services for workers’ compensation.
***This website and advertising are provided by Baker Street Funding, LLC to the extent that there is advertising related to Baker Street Funding, LLC. Transactions facilitated by us are not to be considered loans. These transactions are non-recourse financing agreements, which means that we are making an equity investment into your litigation. If you lose your case, you are under no legal obligation to repay your legal advance. The term lawsuit loans, lawsuit lenders, lawsuit cash advance(s), settlement advance loans, lawsuit settlement loans, or any word related to a loan(s), lending, lender(s), borrow(er), and cash advance(s) may be used to refer to legal finance. The words and any of its forms: loan(s), lender(s), lending, borrow, and cash advance(s) are strictly used for marketing purposes and easier comprehension for prospective clients. Our client relationships are paramount to us, and we take the client’s education process very seriously.
All information provided in this site is for educational purposes only and should not be taken as investment, legal, tax, or financial advice. We do not provide investment, legal, tax, or financial advice and prior to making any financial decision, please consult a financial advisor, an attorney, or tax professional.
All funding is subject to approval. Additional restrictions may apply. Call for details at 888-711-3599.
Baker Street Funding:
New York Office: 77 Water Street, 7TH floor, New York, NY 10005
Florida office: 780 5th Ave. South, Suite # 200, Naples, Florida 34102
Lawsuit Funding, Settlement Financing, and Litigation Loans: Baker Street Funding, LLC.
Copyright © 2018. All Rights Reserved.
All Rights Reserved