Updated Research:
Even if you are sold that litigation finance might be an option for your company, some feel it is risky to even bring the idea to their company executives. Late Harvest Financial surveyed hundreds of company executives to see how disparate opinions were on funding litigation.
As it turns out, your boss is far more likely to be receptive to the idea of funding a lawsuit than you might think.
88% of company executives were open to the idea of using financing to fund litigation. This was without doing quick and easy calculations to see if financing a lawsuit would be appropriate for the respondents company’s exact situation. In fact, this question measured their general warmness to the idea; not even for companies who were facing a specific situation.
Considering that many business owners are simply lawsuit averse, this is an overwhelmingly positive response to further consider the idea. For those who are generally lawsuit averse and answered “no” to the above question, we asked if they would be more likely to use financing if they did NOT have to pay back the loan in an unsuccessful lawsuit. 58% of those folks were open to the idea.
Great, but my company is too ____. Litigation financing is only for ____ companies.
- Small / Larger
- Large / Smaller
We have a more in-depth article for folks who ask, “what size companies should use lawsuit financing?” Suffice to say, litigation finance really depends on the dispute amount. If the investment into your lawsuit potentially takes away from what can be invested in operations, it is always worth using a calculator or speaking to Late Harvest Financial to see if litigation finance makes sense.
Businesses of all sizes can successfully deploy financing for their litigation. In our survey of executives, you can see that several business sizes were represented.
