Legal cases can be expensive and time-consuming, especially those revolving around commercial matters and intellectual property rights. Litigation funding provides a way for those who can’t afford the upfront costs of legal representation to still seek justice by obtaining loans specifically for legal representation.



Litigation funding is essentially bridging finance prior to a big settlement payout.

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If you’re considering applying for a loan to help with legal representation costs, it’s important to understand what litigation funding is and how it works. In general, litigation funding is when a company or third party provides financing to help cover the costs of legal proceedings. This can include things like paying for an attorney, filing fees, and other related costs.

There are a few different ways that companies offer litigation funding, but one of the most common is through pre-settlement funding. This type of funding is typically provided after you’ve been injured and have filed a lawsuit against the responsible party. The funding can be used to cover things like medical bills, lost wages, and other damages incurred as a result of the accident.

The process of applying for pre-settlement funding is usually fairly quick and simple. Most companies will require some basic information about your case and your financial situation. Once they have this information, they’ll be able to make a decision on whether or not you qualify for funding. If you do qualify, they’ll typically give you a cash advance that you can use to cover your expenses related to the case.

It’s important to remember that not every case will qualify for litigation funding. In addition, even if your case does qualify, there’s no guarantee that you’ll receive any money from the company providing the funding. Litigation funding is based on the merits of your case, so if your case isn’t strong enough to win in court, you may not be approved.

If you’re interested in applying for pre-settlement funding, it’s important to read over the terms and conditions of the agreement carefully before you accept any money or sign any documents. You should also make sure to ask questions if there is anything you don’t understand before you agree to the terms.


Most litigation funding follows a “no win, no pay” model.

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Litigation funding is a type of financing that allows plaintiffs to receive cash advances on their pending lawsuits. These advances are typically in the form of loans, and they are typically used to pay for legal representation and associated costs. In some cases, litigation funding may also be used to pay for expert witnesses or other necessary expenses.

There are a few different ways that litigation funding can be structured, but the most common type of arrangement is known as a “non-recourse” loan. This means that if the plaintiff does not win their case, they are not required to repay the loan. Litigation funding is often viewed as an alternative to traditional forms of financing, such as personal loans or lines of credit.

Frequently asked questions

What is the minimum claim amount?

Generally, the expected payout/claim should exceed $1mil (USD). Loans for legal fees should exceed $200k (USD).

Who qualifies for litigation funding?

In order to qualify to receive a loan for legal representation, the applicant must be a citizen or permanent resident, 18 years of age or older and have a case currently in litigation. The case must also have a likelihood of success and the applicant must demonstrate the need for financial assistance in order to continue pursuing their legal action.

What are the benefits of litigation funding?

There are many benefits to litigation funding, especially for individuals who may not be able to afford legal representation otherwise. Through this type of funding, plaintiffs can receive the money they need to cover the costs of their case, including attorney fees, expert witnesses, and other associated expenses. This allows them to level the playing field against larger and more well-funded opponents.

In addition, litigation funding can help ease the financial burden on plaintiffs during lengthy and complex cases. It can also provide peace of mind knowing that there is funding available to pursue a claim, regardless of its outcome.

For defendants, litigation funding can provide protection from having to pay a large judgment or settlement if the case is lost. In some cases, Defendants may even be able to negotiate a lower settlement amount if they know they have access to litigation funding.

Understanding how litigation funding works and how it can benefit both plaintiffs and defendants is critical in today’s legal landscape. By working with a reputable lender, you can ensure that you have the resources you need to pursue or defend against a claim.

Types of Litigation Funding

Litigation funding comes in many different forms. Some common types of litigation funding available include:

1. Pre-settlement funding: This type of funding is provided to plaintiffs before their case is settled. This can be used to help cover legal expenses and other associated costs.

2. Post-settlement funding: As the name suggests, this type of funding is provided after a settlement has been reached. It can be used to help with any outstanding legal fees or other expenses related to the case.

3. Trial funding: This type of funding is typically provided during the trial phase of a case. It can be used to help cover the costs associated with taking a case to trial, such as expert witnesses or court fees.

4. Settlement advances: In some cases, plaintiffs may be able to receive a portion of their expected settlement amount upfront. This can be helpful in cases where the plaintiff needs immediate financial assistance but cannot wait for the full settlement amount to be paid out.

How Does the Application Process Work?

The application process for litigation funding is relatively simple. First, the plaintiff or their attorney will submit a brief description of their case to the funding company. The funding company will then review the case and make a decision on whether or not they are willing to provide funding. If they are able to provide funding, they will send an offer to the plaintiff which will outline the terms of the loan. Once the plaintiff accepts the offer, they will sign a contract with the funding company and begin receiving funds which can be used to pay for their legal representation.

What is an alternative solution if I'm not approved?

There are many reasons why someone might want to seek out an alternative to litigation funding. Perhaps they don’t want to take on the risk of losing their case and having to repay the loan with interest. Maybe they are uncomfortable with the idea of giving up a portion of their potential winnings to the funding company. Or maybe they simply can’t find a good match for their needs among the available options.

Whatever the reason, there are definitely other ways to finance your legal case besides going through a litigation funding company. Here are just a few possibilities:

1) Personal savings: This is always an option, but it obviously isn’t ideal for everyone. If you have the financial resources available, though, it could be worth considering.

2) Personal Loans: You can apply for up to R150 000 in personal finance for smaller disputes

3) Loans against property: If you have a fully paid-up property, you can use your property as collateral for a loan.

4) Loans against assets: Do you own collectables, antiques, watches, jewellery, vehicles, bikes or other valuables? You can use them as security for a personal loan to cover your legal fees. 

What types of cases are eligible for litigation funding?
  • Commercial lawsuits
  • Consumer disputes
  • Intellectual property