Legal Finance SE is introducing a new product: Prepaid Monetisation of claims. Plaintiffs and claimants receive money immediately as an advance and do not have to wait for the end of the case.
Typically, a litigation funding company will pay the court and legal fees for all instances of litigation in return for a share of the litigation profits. If the case is won, the litigation funder receives a share of the success, usually 20-50%.
With the new product Prepaid monetization , Legal Finance makes an advance payment to the plaintiff immediately upon acceptance of the claim or lawsuit.
Advantage for the plaintiff: Immediate money for his claim. Advantage for Legal Finance: A higher share in the success of the case.
Legal Finance is currently assessing which of its existing and pending cases are suitable for Prepaid Monetisation.
When Prepaid Monetisation is completed for a claim, Legal Finance expects to receive higher cash inflows than in normal litigation funding.