5 Things About Litigation Finance Should Know Every Counsel
1. Financing To Help Against Rate Increase â—? Financing can help hedge against rate increases and other risk factors in the future. â—? The financial market will be sure that the council will raise interest rate in next month and even twice sometimes. â—? For the general counsel litigation, it means any increased use of the legal finance will move risk off the corporate balance sheets by offering capital which is to be repaid if underlying matters are unsuccessful.
2. Litigation Corporate Finance â—? Litigation finance proves to be corporate finance for the laws. â—? Litigation finance will help the GC to secure the capital depending on corporate legalized assets just as C-suite collages do across other business areas.
3. Legal finance for defense and transactional law â—? Legal finance will apply to defense matters and transactional law area. â—? Legal finance can offer capital in defense as well as within the plaintiff matters, along with some other contexts, which are not related to litigation. â—? Whenever a company remains a defendant under GC Services, the litigation finance can enable one alternative fee arrangement with the Inhouse Legal Services.
4. Accounting Area of Litigation ● Finance changes the current accounting area of litigation spends. ● Without proper financing, litigation can impair the financial performances permanently depending on the accounting rules associated with litigation expenses. ● The accounting result of any successful claim from In-house legal Services can prove to be permanent reduction as the legal expenses will reduce but the recoveries will not increase it.
5.Convert the litigation department of a firm â—? Finance can always convert the litigation department of a firm into a profit center. â—? By just leveraging the litigation finance under portfolio basis, GC gets the chance to procure nonrecourse financing for covering multiple matters.
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