Litigation Finance: A key strategy in a challenging economic background

Financiación Litigios

In an economic context characterized by a sharp decline in business sales, companies are actively seeking innovative solutions to sustain their operations. In this scenario, litigation finance emerges as a strategic tool that can provide crucial support to companies grappling with financial challenges.

According to data from the Business Turnover Index published by the INE in September, business sales experienced an alarming decline of 8.3%, marking the most significant setback since February 2021. This downward trend, persisting for six consecutive months, paints a complex outlook for various economic sectors. However, in response to this challenging situation, litigation funding emerges as a strategy to alleviate the financial strain on companies.

How can litigation funding become a crucial support tool for companies facing financial difficulties amid a challenging economic environment?

Litigation funding enables companies to secure financial resources without recourse. Benefits are only shared if the final outcome of the litigation is favorable. Companies can leverage litigation funding to cover legal expenses and address other pressing financial needs. Furthermore, companies gain a strategic partner, fortify their litigation strategy, and distribute risk, with the litigation fund aligning and sharing the challenge to transform it into a solution.

Furthermore, the adaptable nature of litigation funding allows tailoring to the specific needs of each litigation case. It not only supports companies at the initiation or during the course of litigation but also facilitates favorable out-of-court settlements. The presence of financial support strengthens a company’s negotiating position, providing the flexibility to achieve swift and effective resolutions.

In conclusion, amid the overall decline in sales, litigation funding emerges as a astute and pragmatic business strategy at a time when companies seek innovative methods to enhance their financial performance. Rather than perceiving litigation as an additional financial burden, companies can leverage litigation funding as an asset or a means to fortify their position.

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