A litigation loan can be used to assist you in financing your case. Such loans will pay for your solicitor’s legal fees and disbursements (such as court or barrister’s fees). Usually the loan is repayable at the end of your case or within 36 months.
The loan is a credit agreement between you and the finance provider. Your solicitor may facilitate the loan by liaising with the creditor and providing details about your case, but there is no credit agreement between the borrower and the solicitor, and the solicitor is not usually paid commission for referring you to the finance provider.
Finance providers are more likely to provide a litigation loan to assist you in a divorce or property matter, where there are assets which can be used to help repay the loan at the end of proceedings. Finance providers may also ask you to make a minimum payment during the course of your case. For example, such payments may be the interest or 1.5% if the outstanding balance, along with the draw down fee. A draw down fee is incurred each time your solicitor draws against the loan account to pay their fees or disbursements associated with your case.
Speak to us to determine whether your case would be suitable for a litigation loan.