Our litigation funding process for claimants
How does litigation financing work?
The use of someone else’s money to finance an asset is as old as business itself.
At Augusta, we believe that your claim is an asset, and we are prepared to provide finance to you and use the claim as the collateral for that finance. In return for doing this, and provided that the claim is successful, we will receive our funds back together with a success fee.
Augusta’s loans are non-recourse – if the claim is not successful you do not repay the finance.
Qualifying for our litigation finance is no different to how a business would qualify for any other loan. You contact us and we will provide a term sheet for the financing. If you are happy with this, we help complete the application which, in effect, is a review of the asset (the claim), and then, if approved, we advance the funds.
Why use our litigation financing?
People use finance for litigation when they don’t have the funds to pursue their claim, have the funds but would rather use the cash for other purposes, or they are looking to share or remove the risks associated with the claim.
The essence of litigation finance, however, is to protect yourself against a loss. For example you could:
Pay legal fees of £150,000 yourself to try and recover £400,000 of damages. If you lose, you have spent the £150,000 plus you will be the other sides cost of, say, £100,000. Your potential loss is £250,000; or
Use litigation finance (in exchange for a success fee) to pay the legal fees of £150,000 to try and recover £400,000. If you lose, you pay the other sides costs and you don’t have to repay the financier. Your potential loss is nil.
Unfamiliar with litigation funding? Augusta provide a useful introduction in the video on the right.
It was particularly important for us to work with a funder who would allow us to get on with the job, without interfering in the management of a case. Augusta made the whole process as straightforward and lawyer friendly as possible.
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