Findings by Vannin Capital, a third-party litigation funding organisation, reveal that being able to show that money is easily obtainable is one of the most important factors for solicitors when choosing a litigation funder.
The poll, which was carried out between December 2012 and February 2013, found that a strong personal relationship is also a significant consideration for lawyers.
Reasons that put solicitors off from seeking funding include unrealistic terms and difficult negotiation (67% cited), as well as inflexibility to respond to changes (47%).
Further study findings show:
Around 50% of respondents believe that the Lord Justice Jackson reforms, following his ‘Review of Civil Litigation Costs’, will make funding more attractive.
More than 80% of solicitors are likely to think about using litigation funding, in the next 12 months.
General commercial litigation remains the most popular funding area (39%).
56% claim that getting funding takes too long.
18% of solicitors want funders to answer questions at speed.
Offering more favourable terms makes solicitors increase their funding use.
The majority claim that it is too early to judge the impact of the Association of Litigation Funders’ code of conduct.
So it is clear from the poll that solicitors cite the need to know that funds are there as a key factor when choosing a funder.
Nick Rowles-Davies, Vannin Capital consultant, said: “The litigation funding market is split between those-like Vannin- that have funds and those that claim to have but don’t.
“A good funder will be able to show they have the money ready to go, will make rapid decisions, and will develop a genuine partnership with the solicitor and their client. Membership of the Association of Litigation Funders, with its capital adequacy requirements, acts as a good indicator that you are dealing with a proper funder.”
This article was written by Vannin Capital, the leading experts in litigation funding. As a flexible and innovative litigation funding organisation, it is a member of the Association of Litigation Funders and adheres to the Association’s code of conduct. Speak to the reputable third-party funding firm today or visit the website for more information.