Have you heard of dispute financing?

By juriscoin | JurisCoin Blog | 25 Jul 2019


Have you heard of legal financing? 

Litigation financing, also called legal or third party financing, is the provision of capital to a claimant in exchange for a portion of the proceeds of the dispute. 

For example, a potential claimant has a very likely cause for success but does not have the resources to pay legal costs and / or attorneys. 

You may even have the appeal, but you want to employ it in other sectors, giving up a percentage of what you would gain from the successful trial. 

The main feature of dispute settlement is that the appeal is generally limited to the satisfactory outcome of the dispute, which means that the financed party only pays the dispute financier if it wins or resolves the case.

Dispute financing redistributes all or part of the financial risk of disputes to the dispute financier. The capital provided by a litigation financier can be used not only to pay attorney's fees and expenses associated with the process or defense of a legal action, but also for business operations or to pay or refinance debt. 
 
Litigation financing therefore frees companies to allocate their capital resources to their best use by investing in projects that optimize returns and promote economic growth. 

Good for the individual

Financing litigation takes the risk of financing one. Financing is not a recourse, which means that if the claim is unsuccessful, you will not repay the loan. 

Good for the company

Legal disputes can be costly with unpredictable results, which often leads to companies that seek no claims and miss the opportunity to monetize a potential asset. 

Financing will not only signal to the market and your opponent that you are in an advantageous position with a strong case, but will also help you secure the legal team you want. 

Good for the funder

Litigation financing is now a dominant source of capital and a risk management tool that is used around the world by individual and corporate applicants of all sizes. It is a good way to bet on potential success demands in conjunction with other funders, minimizing the risks in case of failure.

Now imagine that you can finance a dispute together with others using cryptocurrencies.  Then think of Juriscoin. ;)

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