Essential to the conduct of any piece of litigation is adequate funding so that the claimant can match the resources available to a defendant, which in nearly all cases exceed those of the client.
Without adequate funding, cases can be compromised in a number of ways:
- "Economic terrorism" - where one party simply tries to drain the financial resources of the other, forcing them to drop the case
- Inappropriate legal team - where a litigant is forced into hiring a legal team based on cost but not expertise.
Litigation funding allows claimants to:
- Security and equality of financial capability
- A level playing field in terms of bargaining power
- Off-balance sheet risk
- The ability to fund business expansion without tying funds up in litigation