Litigation loans

There are a number of different lending options if you do not have sufficient resources of your own to pay your legal fees. These can range from borrowing from family or friends to obtaining loans or using credit card facilities from banks. Litigation loans are a specialised form of lending designed to help people pay their legal bills and related costs. They are often provided as a “facility” rather than an up front loan. This means that you can “draw down” on that facility as and when you need to pay your bills. This means that you are only paying interest on the amount you owe rather than the full facility. However interest rates are usually higher than those available from a high street bank loan because the litigation lenders consider it to be a higher category of risk, sometime not requiring any interim payments until the final settlement is reached.

A litigation loan is advanced on the assumption that the individual will receive sufficient liquid capital at the end of the case to repay the loan. If there is no prospect of this for example because the case is only about arrangements for a child, or it is otherwise clear that the individual will not receive any financial payment or other capital assets in the settlement, it is unlikely that a litigation lender will be willing to lend.

There are a number of different lenders in the market and we can provide their details to you if you require assistance in meeting your legal fees.