Litigation Finance Options

Litigation finance, also known as legal financing or third-party litigation funding, is a method where litigants (or law firms) can finance their litigation or other legal costs through a third party. Here are some of the prominent types of litigation finance options:

1. Consumer Legal Funding: This is for individuals involved in personal injury cases (e.g., auto accidents). The funding is often provided as a cash advance against the potential settlement.

2. Commercial Litigation Finance: Typically designed for businesses. Financiers invest in a company's legal claim, often in return for a share of the eventual proceeds from the lawsuit.

3. Law Firm Financing: This provides law firms with the funds they need to proceed with cases. It's either done through a loan, or non-recourse advance on a matter or a pool of cases.

4. Post-settlement Funding: Financing provided after a case has settled but before the funds are disbursed. This can be useful when there is a delay in receiving the settlement.

5. Appeal Financing: If a case has been won but is being appealed, financing can be obtained against the expected proceeds of the original judgment.

6. Working Capital Lines of Credit: These are not tied to a particular case but provide law firms with funds to cover operating expenses.

7. Patent Litigation Finance: Specific to patent disputes. Given the high cost and unpredictability of patent lawsuits, specialized funding can be beneficial.

8. Judgment Enforcement Funding: If a litigant has won their case but is struggling to collect their awarded judgment, they can obtain financing against the expected proceeds.

9. Portfolio Financing: Rather than funding a single case, financiers offer funding against a basket or portfolio of cases. This spreads the risk for the financier.

10. Monetization of Judgments: This is when a third-party acquirer buys a legal claim outright.

11. Defense-Side Financing: Though less common, there are also funding options available for those looking to finance the defense side of a lawsuit.

12. Bankruptcy Claims Financing: Specific funding designed for claims arising out of bankruptcies.

The exact structure and terms of litigation finance deals can vary widely based on jurisdiction, the nature of the lawsuit, and the specifics of the agreement between the financier and the litigant or law firm. As always, when considering litigation finance, it's essential to seek proper legal and financial advice.