Litigation funding allows claimants to pursue legal action without bearing the upfront financial burden of legal fees and associated costs. Instead, a third-party funder provides capital to support the case — and only receives a return if the claim is successful.

How it works:

• The funder agrees to finance all or part of the legal costs associated with the claim.

• The funding is provided on a non-recourse basis, meaning the claimant owes nothing if the case is unsuccessful.

• In exchange, the funder receives a pre-agreed share of any damages or settlement proceeds if the case is successful.

The arrangement is typically formalised under a Litigation Funding Agreement (LFA), which outlines the terms, recovery mechanics, and responsibilities of each party.