Litigation finance

The litigation finance industry commercial focus

The litigation finance industry, while seemingly new, has been around for over 20 years. Litigation finance has transformed from a little known secret in the legal industry, into a mainstream funding solution, that is utilized by hundreds of thousands of plaintiffs and attorneys world wide. Litigation finance, which was once reserved for plaintiffs unable to pay for the pursuit of legal action, is now available to all types of business, regardless of capitalization structure. Litigation funding can be beneficial to:

  • Pay attorneys fees or case related expenses; 
  • Monetize judgements under appeal; 
  • Put receivable capital to use immediately. 

Baker Street Funding provides non-recourse financing which means that the funds are only repaid upon success of the litigation.

Today's legal system

In todays legal system, justice requires capital. Litigation is expensive and the costs can pile up quickly. Attorneys fees, consultants, depositions, witness prep, trials, research, motions, subpoenas and appeals can add up to millions of dollars by the end of a large commercial lawsuit. All too often, plaintiffs are handcuffed in their pursuit of legal action because of the immense cost behind litigating a successful claim. Many plaintiffs who have compelling cases end up abandoning their legal recourse because they can not continue to proceed with the legal fees. 

What is commercial litigation funding?

Litigation funding is a non-recourse financial agreement which means that if you lose your case, you will have no obligation to pay the funder back. Litigation finance (also commonly known as litigation funding or business litigation finance) is when a third party that is not involved in the legal proceedings, provides the plaintiff or their counsel, with capital in return for an equity portion of their settlement proceeds.  

Should I apply for business litigation finance?

Many plaintiffs and attorneys find themselves in great need of capital while litigating a lawsuit and litigation finance provides them with the much needed funds for them to continue their fight.  If this is you, then you may benefit from commercial litigation financing. At Baker Street Funding we have helped business owners cover every day expenses the help them maintain their lifestyle that has been disrupted by legal action. 

Who benefits from commercial litigation finance?

Major universities, Fortune 500 and 1000 companies, as well as large privately held businesses have benefited from commercial litigation funding. Being able to draw capital by monetizing a future legal claim can not only pay for the cost of litigation, including expert testimony and travel fees for witnesses, but it can also be used as working capital for companies that are bogged down by the extensive cost constraints of litigation. 

Litigation finance requirements

For commercial claims we require the following: 

  • Funding requested must exceed $100,000
  • Anticipated judgement must exceed $1,000,000
  • Defendant must have a clear ability to pay and limited basis to appeal
  • The litigation must have a strong potential to succeed

We will consider default judgements without a response from the defendant if they have a solid ability to pay and the appeal process has been exhausted. 

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Baker Street Funding has been recognized by:

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Our litigation funding division was founded to help create a custom capital solution for businesses.

In an ideal world, business can find attorneys to represent their interests on a full contingency basis. This fee arrangement alleviates pressures of dedicating capital away from normal business operations and allows a business to continue to operate without need for additional working capital. Meanwhile, it also has the added effect of motivating the attorney to not only win the case, but maximize the settlement award. Even with such a favorable arrangement a business can still be damaged by the litigation process, and the damages experienced by the business can lead to a reduction in working capital. A lawsuit, even when taken on full contingency, can have a negative affect on a business cash flow and hamper their ability to grow or even survive. Depending on the lawsuit, the financial health of the company and other factors, a business may have to take on traditional debt, which can be difficult to service.

Baker Street Funding understands the capital needs of businesses of all sizes and how a lawsuit can jeopardize a businesses future. Our commercial litigation funding division was founded to help create a custom capital solution for businesses by leveraging their future settlement award for up front capital. This allows our clients to protect their assets and pursue their case without worrying about monthly debt service payments or repayment before settlement funds are available.

Commercial litigation funding, also known as commercial litigation loans are cash advances based on the future settlement award of your businesses lawsuit. It allows your business to leverage that award to provide immediate liquidity to pay for whatever expenses your business needs to meet. Repayment of these funds are only due when the settlement award is sent to your attorney and are non-recourse, meaning that if the litigation is not successful, you are under no obligation to repay the funds back to us. Below are a few points you may want to consider about commercial litigation loans:

  • Your case must have merit and a high chance of success
  • Funding does not come with covenants and can be used as the business sees fit
  • Funds are typically non-recourse and do not have to be paid back in the case of an adverse judgement.

Aiming to help clients navigate the waters of business litigation

“Every day, business find themselves in a litigious environment and potentially vulnerable to bad faith actors. While the actions leading to a lawsuit can be extremely damaging to a company, we are here to help. Our commercial litigation funding division aims to help our clients navigate the waters of business litigation and provide a life-line for them in the form of readily available capital” 

Daniel A. DiGiaimo, CEO of Baker Street Funding


Who qualifies?

There are multiple ways that litigation funding companies can assist investors, plaintiffs and attorneys in your commercial litigation funding. There are many benefits to both the plaintiff, their counsel and investors that are highlighted below. 

Litigation funding for plaintiffs.

Plaintiffs, whether they are individuals or corporations that are involved in commercial lawsuits and have an immediate or future liquidity need, can contact Baker Street Funding for further review of your case. We help undercapitalized plaintiffs unlock liquidity needed for working capital to help reduce the risk that you will run out of money and prematurely settle your case for less than its proper valuation. You can request funding here.



Corporate litigation financing

Baker Street Funding's litigation finance investment standard procedure

  • Day 1

Execute NDA and request documentation on the claim.

  • Day 2 - 8

Evaluate the documents and claim. Additional due-diligence is also done.

  • Day 9

Prepare and send investment documents for execution.

  • Day 10

Deploy capital and monitor case progress moving forward.


How we fund cases at different stages of maturity.

Commercial litigation funding cases

4 stages of maturity of litigation financing for commercial cases:


Pre-Trial claimants have found our due diligence process to be extremely beneficial because our experienced underwriters are able to give the client a unique perspective into the strengths and weaknesses of their claim and trial strategy. 


We also provide clients with funds to help them better prepare for trial. Ultimately the trial strategy is up to the attorney and their client but fresh ideas and strategy is always beneficial even if not used. 


Appeals are long and arduous processes and we strive to give appellees the ability to monetize a portion of their judgement, which mitigates the stress involved in seeing a judgement reduced or reversed. We typically look to fund up to 25% of a final award that is being appealed. 


Our clients have used our funding to ensure that they have the resources to enforce and collect on their judgment by hiring counsel and asset recovery specialists. This is especially beneficial to clients dealing with recalcitrant judgement debtors and cases involving sovereign entities. 


Commercial litigation funding advantages

Advantages of business litigation financing

Litigation finance which was one reserved for business plaintiffs who did not have enough capital to pursue their claims, is now available to businesses regardless of capitalization structure. Here are some of the advantages of litigation finance:

1) Allows businesses to pursue strong, but complicated claims

When businesses pursue strong, but complicated claims that they otherwise would not have the capital to pursue, commercial litigation funding provides plaintiffs with the power to see their suit through a successful completion. When a business finds itself pursing a claim against a large and well capitalized defendant, they can rest easy knowing that they have a large pool of capital to pull from to continue on with their claim. Only cases that pass our due diligence process and have a high potential of being successful are financed.

2) Financing allows a business to choose the attorneys they want regardless of fee structure

As a business owner, you should not be limited in your search for representation. Financing can allow you to work with the attorney you believe is best to pursue your claim even if they will not work on a full contingency basis.

3) Litigation financing for businesses can alleviate the need of working capital

In choosing to fund your case with a litigation financing firm,  you can free up capital that would otherwise be allocated to the litigation, allowing you to continue to expand your business and operate normally.

4) Positive account benefit

Money spent on litigation is an immediate expense, which can reduce earnings. Settlement awards and settlement financing is treated as a non-recurring extraordinary item that does not negatively affect your bottom line.


Submit your case for review.

Litigation finance applications:

We currently answer all funding requests in less than 60 minutes.

Baker Street Funding

77 Water Street, 7th Floor, New York, New York 10005, United States

Office visits are by appointment only. Or call us directly at: (888) 711-3599