Economic conflict can often entail a certain degree of risk, in addition to the implicit loss of time, outlay and resources incurred.
The partial or total offsetting of these risks to dedicated investors can prove a more preferred solution in these cases.
Similarly, the possibility of converting litigious assets into financial assets can serve to enhance resource flows, ensuring an important means for corporate financing.
Legal finance operations do not represent a credit and, consequently, do not affect the creditworthiness of individuals and corporations, nor do they generally require exacting advertising requirements.
Risk transfer operations are comparable with those of venture capital, whose underlying asset is a credit or right in dispute.
Financing can cover a portion of the legal cost incurred by a lawsuit or arbitration proceeding, applicable, equally, to a total or partial acquisition of the credit itself.
For a given credit or claim to be viable, certain conditions require evaluation with respect to the validity and the corresponding weight of the right, identification and solvency of the debtor, progress in the claim itself, complexity of the matter, etc. Depending on the case, these variables determine both the credit eligibility and the conditions of the solution implemented.
For a successful outcome of a legal finance operation, the collaboration of legal advisors who are already involved on the matter is essential.
