Choosing Law Firm Funding Companies: Questions Every Attorney Should Ask

What is Litigation Financing?

Litigation financing, also called litigation funding, is a way for law firms and plaintiffs to obtain lawsuit loans before a case is resolved. Litigation finance companies provide funds in exchange for a share of the settlement or judgment, or through a structured repayment agreement.

This is different from a standard business loan, since repayment often depends on the outcome of the case rather than a fixed schedule.

Key points about litigation financing:

• It is non-recourse funding in most cases, meaning the firm does not repay if the case is lost.
• Funds can cover litigation costs, expert witness fees, international arbitration fees, or firm overhead.
• Some arrangements are case-specific, while others fund the firm as a whole.
• A private lending law firm may pursue this route instead of a traditional bank loan, since approval is based on the merits of the case rather than credit history.
• Terms vary widely across law firm funding companies.

Litigation funding is not a loan in the traditional sense. It is closer to an investment in the outcome of a case.

There are generally two structures:

• Single-case funding, where capital is tied to a single matter and repayment depends solely on that case.
• Portfolio financing, where a group of cases is bundled together to spread risk across multiple outcomes.

Portfolio financing deals often come with better terms because the funder's risk is diversified. Single-case deals are simpler to negotiate but can carry a higher cost of capital. Attorneys seeking both options should clearly understand the structure and ask a prospective funder to explain how it works.

Examples of Top Law Firm Funding Companies

There are several law firm funding companies, each with a different focus and deal size. Here is a look at some of the well-known names attorneys often research when comparing providers.

Note: This list is based on publicly available information about each company's stated focus and market position. Attorneys should still verify current terms, minimum deal sizes, and eligibility directly with each provider.

1. Burford Capital

Burford Capital is a well-known law firm funding company. It funds both individual cases and entire litigation portfolios, and it works with firms of varying sizes. This includes boutique practices to large commercial firms.

Pros	Cons
Strong track record and a large capital base. Handles complex, high-values commercial litigation. Offers portfolio funding, not just single-case deals.	Primarily focused on large commercial cases. Application process can be lengthy. Smaller firms may find the deal size requirements too high.

Firms considering Burford Capital should be prepared for a thorough underwriting process. The company usually looks for cases with substantial recovery potential.

2. OmniBridgeway

OmniBridgeway operates internationally and funds a wide range of case types, from commercial disputes to insolvency claims. It is regularly listed among the top law firm funding companies for firms handling cross-border matters. ?

Pros	Cons
Global reach with offices across multiple continents. Experience across diverse case types. Established relationships with major law firms.	Terms can be complex due to cross-border structuring. Funding decisions can take time due to multi-party review.

They tend to work well for firms already handling international disputes or insolvency matters.

3. Curium Capital

Curium Capital focuses on providing capital to law firms and claimants, with an emphasis on flexible deal structures. It is a smaller name compared to some law firm funding companies, but it has built a reputation for responsiveness.

Pros	Cons
Flexible terms tailored to case specifics. Works with both firms and individual claimants. Relatively responsive underwriting process.	Less brand recognition in the broader market. Limited public information on past deal outcomes.

Attorneys who value a more personal underwriting relationship prefer working with Curium Capital.

4. LexShare

LexShare focuses on providing attorney capital funding for firms that need working capital tied to pending litigation, rather than only single-case investments. It has positioned itself among newer law firm funding companies targeting mid-sized practices.

This model suits firms that need ongoing operational flexibility.

How Does Litigation Funding Help Law Firms?

Litigation funding can be used as a strategic tool to shape how a firm grows and competes. Here is how law firms put law firm funding companies to work in practice.

• Cover upfront case costs like pre-settlement funding, expert witnesses, depositions, and court fees.

• Take on contingency cases the firm might otherwise decline due to cash flow

• Smooth out revenue during long litigation cycles.
• Fund firm growth, including hiring, marketing, or opening new offices.

• Manage payroll and overhead during slow periods without dipping into personal or partner capital.

• Diversify funding sources so the firm is not fully dependent on a single bank relationship or line of credit.

Law firms that work with a private lending law firm or third-party funding often find they can take on more cases without risking their financial stability.

What Questions to Ask Yourself While Choosing Law Firm Funding

Before signing with any provider, attorneys should slow down and ask a few direct questions. These questions apply whether you are comparing large, established law-firm funding companies or newer market entrants.

1. What is the true cost of the funding, including fees, interest, and any share of the recovery?

Get the full cost broken down in writing, not just a headline rate.

2. Is the funding non-recourse, or could the firm be liable if the case does not succeed?

This single point can change the entire risk profile of the deal.

3. Does the funder have experience with cases similar to mine, in size and practice area?

A funder unfamiliar with your practice area may misjudge risk and delay decisions.

4. How much control will the funder have over litigation strategy or settlement decisions?

Some agreements grant funders significant input; others stay entirely hands-off.

5. What is the funder's reputation among other attorneys, and can they provide references or case studies?

Ask peers who have used the same provider before signing anything.

Answering these questions helps attorneys avoid unforeseen losses. It also narrows the list of law firm funding companies that may best suit your needs.

Bottom Line

Choosing among law firm funding companies smartly is important. The right partner can help a firm take on bigger cases and grow significantly.

Compare providers carefully, understand the commercial litigation finance options, read every term, and ask the questions before signing. Taking time to evaluate law firm funding companies pays off later, when the firm needs capital fast and cannot afford to go wrong.

Litigation finance is a tool that works best when a firm understands exactly what it is signing up for. Before making a final decision, it can help to speak with a few different providers, compare term sheets side by side, and loop in a trusted financial advisor.