Coronavirus | Global Recoveries
Covid and the Cash Crisis: Managing your cash flow in uncertain times
The smart choice for organisations to turn cases into cash flow
Clyde & Co is a leading global law firm specialising in the transport, infrastructure, energy, trade & commodities and insurance sectors. We have formed an association with LCM, a specialist in providing commercially viable tailored litigation finance. Together, our advisory services help clients create new business opportunities, de-risk litigation and release resources back into the business.
In a funded dispute you pay nothing towards legal fees as the case progresses – these are paid by a third-party lender who has no direct interest in the litigation. When the case is successful, the lender receives its investment back, plus a pre-agreed margin that reflects the risk incurred. You get all the rest. If the case is unsuccessful, the lender gets nothing.
Traditionally, funders have financed single, isolated claims. Funding of a single claim carries a high degree of risk for the funder because if that claim is unsuccessful the funder will not recover its investment.
Multiple claims can be packaged into a portfolio and the financial risk for the funder is diversified across the book resulting in lower capital risk and therefore a lower return charged by the funder.