Commercial litigation financing: what you need to know!

In the event of a commercial dispute, the competent court is usually the commercial court. But it may be preferable at first to attempt an amicable settlement of the commercial dispute.
Litigation financing
In recent times, litigation financing has evolved into an increasingly popular system among companies, allowing them to file claims that would otherwise be kept in a drawer due to the high cost of trying to reach a settlement through a formal dispute resolution process (arbitration, trial or covenant).
What is litigation financing?
Litigation financing, also known as “legal financing” or “external financing”, consists of financing one of the parties to a dispute in exchange for a percentage of the benefits obtained by the litigator. This allows said party to submit to a trial or arbitration without having to pay directly for it, either due to commercial difficulties or if you prefer to use liquidity for other investments.

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