What Are The Best Litigation Finance Companies in the US?
When people search for litigation funders, their online searches may lead them to pages that claim to rank companies based on funding, customer service, and the ease of their application process.
But in reality, many of these pages are little more than paid advertisements written by people who aren’t exactly qualified experts in lawsuit financing. This is why our legal financing company has decided to do something different. We’ve reviewed them all,provided relevant insights and listed out the five best litigation finance companies.
Yes, we compete with them in the commercial litigation finance industry, but this is precisely why our recommendation is more trustworthy. We’ve studied each company’s background, experience, and quality of service, making our feedback far more reliable than that on LinkedIn or Yelp.
We hope that you’ll rely on our legal funding firm in the event of a pending lawsuit. However, if you choose to take your business elsewhere, we still want you to get help from the top litigation firms – and these are the companies we consider the best.
The 5 Best Litigation Funding Firms
If you need funding for serious litigation, it’s critical that you work with a legal finance company of integrity that protects your interests — not just their bottom line.
Here are the 5 top-rated litigation funding companies in the U.S.:
About The Top 5 Rated Litigation Finance Companies
Tribeca Capital Group
Headquartered in Los Angeles, California, Tribeca Capital Group offers commercial litigation funding and lawsuit cash advances to clients in the United States. All too familiar with the slow pace of the legal system and defense attorney’s stall tactics, the company disburses cash advances that can be measured in hours and days, not weeks and months.
Commercial lawsuits for broken contracts, intellectual property disputes, bankruptcy litigation, whistleblower claims, and more vary widely in fact patterns, damages, and complexity, but Tribeca’s simple, straightforward, and fast cash advance approval process has helped thousands of litigants pursue their claims, with funding ranging from Dollar amounts in the several thousand, into the millions.
Unlike other companies that offer non-recourse litigation funding, Tribeca doesn’t require credit checks. It also doesn’t require personal asset valuation from your law firm or business partners.
We believe that our funding company has the experience, quality of service, and resources that earn it a spot in the top five companies. Apart from earning a sterling 4.4 out of 5 stars rating on Trustpilot, this rating was garnered through nearly 250 reviews. We also maintain rigorous ethical standards as a proud member company of the Consumer Attorneys Association of Los Angeles (CAALA) and the Alliance For Responsible Consumer Legal Funding (ARC).
Tribeca Capital Group funds a wide range of complex lawsuits, including sexual harassment lawsuits, and whistleblower cases. Reach us through our contact page for a free consultation on your case – our team is standing by and ready to help.
Founded in 2014, LexShares’ main offices are based in Boston and New York. The company’s non-recourse financing means law firms and businesses that avail of its services have no obligation to repay if the case is lost. LexShares assesses claims through a comprehensive analysis of damages, the expected litigation budget, and the client’s engagement structure with their attorneys.
It could take up to a week for LexShares to approve an application, which puts this company out of reach for businesses in need of immediate financial relief. The company also assesses an applicant company’s creditworthiness, so those with a shakier financial situation may have to look elsewhere.
However, LexShares enjoys an excellent reputation with clients and its industry peers alike, having funded single cases with as much as $3.5 million. It’s also handled case portfolios for companies and law firms, with multiple lawsuit settlements serving as collateral.
Ranked by Chambers and Partners in its 2021 and 2022 Litigation Support Guide, LexShares has earned high praise for its flexibility and efficiency.
Listed on Australia’s stock exchange, Omni Bridgeway is another top choice for global lawsuit financing. The company operates in 23 international locations and offers financing solutions from all stages of litigation ranging from case inception to post-judgment recovery and verdict enforcement. They work around the clock in different time zones, so their expertise is within reach any time your needs arise.
The company has years of expertise in providing funding in civil and common law jurisdictions. As recently as August 2022, Omni announced that it had as much as $1 billion ready to invest in litigation opportunities, attesting to the company’s financial soundness and capacity to accept various claims.
We highly recommend Omni because of its experienced legal and arbitration team, with over 20 members recognized in Who’s Who Legal Thought Leaders in 2020 and 2021. Omni was also honored with the Canadian Lawyer Readers’ Choice Award as a Top Litigation Funder in 2018, 2019, and 2020.
With six main offices found in North America, England, and the Asia-Pacific region, Burford Capital offers legal finance and risk management services to businesses across the globe. To date, the company has received 11,000 funding requests over its 13-year record of profitability.
In 2021, Burford committed a total funding of $1.1 billion to various companies and law firms. Apart from building accurate litigation budgets, the company helps clients with expense management and offers competitive prices on its funding offers.
The company also stays abreast of the latest legal and financial developments worldwide by hosting events, holding webcasts, and regularly publishing its financial review, the Burford Quarterly. Like Tribeca, Burford’s investments are typically non-recourse, giving clients a financing option that poses no risk to their personal assets.
Based in England and Ireland, Nera Capital has decades of experience in investing in litigation finance. The company has helped over 26,000 litigants since its founding, with a team that boasts fast in-house decision-making. Nera Capital’s application process can take several days, but as an upside, they also consider new types of claims and class actions that they don’t even list on their site.
Like Tribeca Capital Group, Nera Capital doesn’t require monthly payments of interest. Another similarity it has to Tribeca is that it doesn’t restrict the use of your borrowed funds, allowing businesses to manage their cash flow.
Nera Capital also has strong ties to various organizations and companies within the industry, such as after-the-event (ATE) insurance companies, litigators in law firms, and claim originators. This gives them a wealth of knowledge to assess your estimated compensation and determine your loan amount with high accuracy.
What Is Litigation Finance?
Litigation finance, also known as litigation funding, dispute finance, or third-party lawsuit funding, gives capital to a litigant while they await the outcome of their suit. Such a financial arrangement is offered to individuals, businesses, and law firms, with the future proceeds of their lawsuits serving as sole collateral. This allows parties to cover their litigation expenses and other costs without jeopardizing their company or firm’s bottom line.
What Should One Consider When Looking for A Litigation Funding Company?
Litigants should compare company benefits, track records, and industry acknowledgments to find the best third-party funder – these are qualities that every reputable funding company should have. Here’s why:
Reasonable Interest Rates
While many lawsuit funding companies offer fast access to a portion of your settlement, they may charge unreasonably high interest rates. Compare each lender’s rates and keep an eye out for flat-rate versus compounded interest.
Clear, Straightforward Contract Terms
A lending company’s financing agreement should list all charged fees, whether one-time or recurring. It should also clearly write out the contingency nature of the funding, the party responsible for paying the company, and how the company is compensated in exchange for funding.
In addition, their proposed arrangement should also state where and when the company’s compensation will be paid out. This prevents future misunderstandings and allows straightforward recovery in the event of a successful trial.
Control Over Your Lawsuit Matters
A funding company only provides the money you need to answer for expenses during your lawsuit, like attorney fees. Consequently, the company shouldn’t be able to dictate your lawyer’s legal strategy or bar you from pursuing certain suits. If a company’s funding documents state that they can have some form of influence over your chosen legal avenues, this is a warning sign to steer clear.
Other important attributes to consider when deciding on what constitutes a top commercial litigation funding firm:
- Reputation: The firm should have a strong, positive reputation within the legal and financial communities.
- Experience: Look for a firm with extensive experience in handling cases similar to yours.
- Transparency: The firm should be clear about its terms, fees, and the process involved.
- Success Rate: Investigate their track record of successful funding and case outcomes.
- Financial Stability: Ensure the firm has the financial resources to support your case through to completion.
- Ethical Standards: The firm should adhere to high ethical standards and comply with all relevant regulations.
- Case Assessment: They should have a thorough and fair process for assessing the merits of your case.
- Communication: The firm should maintain open and regular communication with you throughout the process.
- Flexibility: Look for flexibility in funding arrangements to best suit your specific needs.
- Client Testimonials: Positive feedback from previous clients can be a strong indicator of reliability and quality.
- Expertise: The firm should have experts with legal and financial acumen to understand the complexities of your case.
- Confidentiality: Ensure they have strict confidentiality policies to protect sensitive information.
- Speed of Funding: Check how quickly they can make funds available after approval.
- Terms and Conditions: Understandable and fair terms and conditions are crucial for a transparent agreement.
- Industry Knowledge: The firm should have a deep understanding of the industry related to your legal issue.
- Professional Network: A firm with a strong network can provide additional resources and support.
Benefits Of Litigation Finance
Some plaintiffs may wonder why they should get capital from a litigation finance company instead of traditional lending institutions, such as banks or credit companies. Here are compelling reasons why you should work with a litigation funder.
Flexibility Of Agreement
Typical lending institutions will require clients to state their intended use for loans, and the use of this money is limited strictly to this purpose. This is where a litigation finance company presents you with a major advantage: the ability to use your borrowed funds as you see fit.
Litigation funding can be used to cover litigation costs, the expenses connected to filing legal disputes, and even other reasonable expenses that are necessary for a plaintiff. For example, litigation funding may be used to cover operational costs to protect a business from the risk of closure during lengthy trials.
Its financial resources can also be used to help litigants pursue contingency litigation that would otherwise be too costly. Litigation finance gives claimants and their lawyers a flexible source of money, helping them resist an unfairly low settlement offer. This improves the chances that lawsuits will be tried in court based on justice and merits, as opposed to the financial strength of the parties.
Immediate Accounting Benefits
Self-funding cases can have a negative impact on your books. Because this adds to your operating expenses, it reduces your overall profit – potentially rattling existing partners and scaring off future investors.
However, litigation funding doesn’t get added to your operating expenses. In some cases, it can even be considered revenue. Because it doesn’t go on your expense column, it frees up working capital for other high-priority business costs. This can paint a better financial picture for a law firm or company, allowing business to go on as usual.
Freedom From Rising Interest Rates
Traditional debts such as conventional loans are typically tied to the Federal Reserve’s interest rates. This means the cost of a loan can increase at any time, potentially putting a lawsuit out of your financial reach.
In comparison, the interest rates and terms of a litigation funding loan are set based on the strength of claims, the size of their expected settlements, and the dispute’s collectibility.
Protection Of Personal Assets
Interest-bearing loans from banks or other lending institutions will require a client to repay the loan’s value with interest, even if they suffer a loss in court. But because litigation funding is non-recourse funding, litigation financing companies only collect a return on their investment when a lawsuit is successful. This protects companies and law firms from the onerous burden of a traditional loan’s debt obligation, regardless of the result in court.
The nature of litigation finance agreements means that the lawsuit’s settlement is collateral. This protects a law firm’s partners or company’s board from demands on their personal assets.
Sufficient Time To Build A Strong Case
Preparing for a lawsuit can be an expensive endeavor, especially if a defendant’s counsel or insurance company employs delaying tactics. Because of how long it can take to reach a verdict and settlement, many defendants end up folding despite the strength of their claims.
The backing of a litigation finance company helps businesses and law firms afford legal representation and other resources to win cases in their respective courts. With this financial help, plaintiffs can hire persuasive expert witnesses, compile all necessary evidence, and consult companies about all issues related to their situation.
Consult Us For Litigation Financing Solutions
Resisting lowball offers from defendants and their attorneys is a difficult task on its own, let alone when juggled with operational concerns. Tribeca Capital Group offers flexible funding so you can pursue legal remedies without hurting your company’s finances. Depending on the analysis of your case, you can receive litigation funding ranging from $500,000 to $1 million.
Reach out to us for a free case consultation through our contact page. We’ll reply to you right away with an amount estimate so you can apply immediately and get much-needed financial resources to fight for the compensation your company deserves!