For many businesses, breaches of contract and intellectual property disagreements are some issues to deal with. However, the lack of financial resources can make the process more challenging. Perhaps, one of the most prominent solutions is availing of litigation funding in Australia. Before you go for it, you must explore other viable solutions.


With this kind of approach, it becomes ideal to make the right choice. Let’s begin with explaining the litigation finance support in the next section-
Understanding the Litigation Funding Solution


Here a third-party financier covers all your legal costs based on certain terms. You need to go through them before you sign the pact. It often includes a percentage of the settlement amount. The best thing is that claimants have to repay the same only if the case brings a successful outcome. Otherwise, there will be no fee that mitigates the financial risks.

Key Benefits of Litigation Funding


• By securing external funding, you just transfer the risks and avoid any further financial burden.


• Legal fees can be high which might erode your financial reserves. This support makes sure that you don’t have to compromise on the cash flow.


• You can involve a professional lawyer to deal with the case and enhance the chances of a favourable outcome.


• Smaller businesses can now equalise themselves with bigger firms through resources for the legal battle. This can be advantageous to bring a quick settlement.

Alternate Solutions for Funding to Resolve Commercial Dispute Cases



• Conditional Fee Agreements


A law firm agrees to offer financial support to obtain a favourable outcome. However, you have to pay an additional uplift fee assuming the risk. This support often appeals to businesses with strong cases.


• Commercial Loans


For businesses, commercial loans are available. You can find banks and financial institutions to sign the pact to obtain funds. Here you will retain full control over your case. Note that you have to repay the amount even if you don’t obtain a favourable outcome.


• In-House Legal Funds


Some larger companies allocate legal funds for dispute resolution. For small to medium-sized businesses, it can serve as a strategy to tackle the case. However, these firms often have some strict guidelines to allow anyone to obtain the funds and cost of repayment can be a bit higher.


• Mediation and Arbitration


Mediation involves a neutral third party to bring a resolution for the case outside the courtroom. In the arbitration process, both sides of the dispute are reviewed thoroughly to come to a conclusion. The only thing is that outcomes must be mutually acceptable. Considering the cost of bringing justice, it is comparatively low.


• Choosing the Best Option


Obviously, the decision to choose an alternative option to litigation funding is completely yours. As everything has been explained, consider your business objectives to make a wise decision.


Final Thoughts


Commercial disputes may require significant financial resources. It may also bring operational pressures while pursuing justice. When it comes to the ‘no-win, no-fee’ arrangement of litigation funding in Australia, this can be the most suitable method to get funded. This can definitely help you achieve fair outcomes and let you proceed towards your long-term goals.
So, take time to select the right funder and go through the terms. You may even consider signing a pact with an international litigation funding agency for your particular case.

Author Bio:
The author specialises in handling commercial dispute cases. He also guides businesses in finding the best funder for litigation funding in Australia through his blogs. Keep visiting them and stay updated!