Friday Funding Series: Leveraging Litigation to Obtain Working Capital
In part 2 of our Lawline video series, Bentham IMF’s Jim Batson succinctly describes how law firms and claimants can benefit from utilizing litigation funding for working capital.
(text adapted from video)
Jim Batson: Working capital. Now, lawyers can take cases on a contingency, right. What's happening there? Well, if you have a case, I'm taking it on. I'm not charging you the hourly fees. Maybe I'm even paying the expenses and you're paying me a percentage. As a law firm, what I can't do is I can't say to you, "Well, look. I know this case is going to take three years. I know you need money to keep your business going during that time period. I'll give you funding so that you can continue your business." Law firms can't do that. Funders can.
Many times, in addition to providing capital for the cost of litigation, we'll provide capital to the client itself so that they can weather that storm. It's not just the cost of litigation that wears people down and that creates an imbalance in the playing field. It's time. Stall, hinder and delay is often the defendant's tactic.