Litigation Loans

Litigation funding

Risk-free capital to help businesses and law firms succeed.

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

What is litigation funding?

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 funding company with no direct interest in the case proceedings.

Law firm's advantages.

Litigation funding assumes the financial burden of legal claims in exchange for a portion of your pending settlement proceeds to be recovered.

Pursue justice with the needed capital with litigation finance

Baker Street Funding offers justice for law firms with a limited budget to pursue legitimate claims and others whose cases may be too small to pursue individually. We help law firms cover the cost of unexpected and expensive litigation as well as provide them with working capital to guarantee the continued success of their law firm.

Take on cases with large potential settlements

Our litigation finance solutions allow law firms to leverage their receivables in order to pay for client acquisition, marketing, and expansion efforts. It also allows them to take on cases that have a large potential settlement amount but require a large amount of expensive expert testimony and research.

Continue the success of your law firm at no risk

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.

Commercial plaintiff advantages.

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 litigation funding for commercial plaintiffs:

litigation financing

Get immediate liquidity.

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.

Settle your case for more.

Take the burden of litigation costs off income statements and balance sheets, and help your company secure the bottom line with litigation finance. Financing high-profile litigation can sometimes influence the defendant to settle the case.

Litigation settlement funding
Litigation funding for law firms

Be well-resourced with litigation finance.

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.

How litigation finance works.

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. Usually, the due diligence period can take anywhere from a week to two weeks for law firms to two months for commercial plaintiffs. The speed of this process is normally dictated by how complex a case is. Once that process is complete, and a contract is executed, and the funds will be distributed to the attorney or client.

Step 1 for funding

Qualify

Upon receiving your request, 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.

Step 2 for funding

Intital review

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 for commercial claims within 2-14 days from when we receive the preliminary diligence documentation.

Step 3 for funding

Term sheet

Once an initial review is complete, we will typically 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. There are no term sheets for law firms.

Step 4 for funding

Final due diligence

Once the term sheet is agreed to, 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.

Step 5 for funding

Funding agreement

Upon acceptance of your case's investment, we will formulate a non-recourse cash advance or line of credit financing agreement for you to execute, followed by the release of the capital.

See the types of litigation we fund.

Explore your options.

Our experts at Baker Street Funding strive to increase your funding options. To learn more, or apply today. We’ll ask you a couple of questions about your litigation and then let you know if we can move forward, so you don’t have to worry about going into debt, or time wasted when you’re waiting to settle your case.

FAQ's.

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.

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 its lawyer. In certain jurisdictions across the globe, Litigation 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.

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 litigation 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.

Select a funding service to apply. 

Attorney Requests

Lawsuit Loans

Litigation Funding

Personal Injury Loans

Settled Case Loans

Surgery Funding

Or just call us at 888.711.3599 to apply.