Australia’s Premier Funders

We help you and your clients to stay focused on doing the work that matters.

Financing Tailored To Your Needs

We deliver tailored legal funding solutions to help your law firm grow, transform and prosper.

For effective financial management firms need to consider many things, but two of the main items are overheads and cashflow. Law firms face the challenge of needing to provide a service to clients (and all the expenses that come with running a practice) prior to realising any income. Cashflow budgets can help identify periods where expected revenue is insufficient to cover regular payments. This also goes hand in hand with knowing your lock up period – look at the sum of your WIP and debtors and this will reveal how long your capital is locked up for.

Despite having a good bank of files and work in progress (WIP), there can be times when reserves are stretched. While banks will not always extend credit against WIP, we understand the strength of your business and provide funding tailored to your needs.

Outsourcing disbursement funding can free up your cash flow, reducing pressure on your general account as well as reducing interest and finance costs associated with overdrafts and traditional bank lending.

Our pre-settlement funding can also be offered to your clients, providing much needed cash at a difficult time.

Our clients are solicitors, financial controllers and practice directors.

At Providior, we understand that law firms have a unique set of requirements that informs what outlays will be funded by claimants and how the financing costs are also borne by those claimants. We’ve provided law firms with working capital, processed thousands of transactions on their behalf and paid hundreds of suppliers. Understanding that you need to keep reports coming in and claims moving, we offer same-day processing of your invoices, access to transparent reporting and practical reporting tools.

What Is Legal Funding and Litigation Funding?

There are many terms used around finance for law firms and lega cases. Litigation funding is the most common term but there are marked differences between it and some of the other financial tools available. Legal Funding (sometimes known as Litigation Funding) is a mechanism or process that allows law firms to finance their litigation or other legal costs through a third party funding company. The funder is paid on case completion in the event of a successful trial.

Companies such as Providior contribute to litigation funding by funding the specific disbursements that can weigh on cash flow. Disbursement funding can also be provided in isolation from litigation funding. Whilst plaintiffs are more likely to use legal financing, defendants are more likely to use legal defence funds. Money obtained from legal financing firms can be used for any purpose, including litigation or personal matters. On the other hand, money obtained through legal defence funds is solely used to fund litigation and legal costs. Providior’s role within this system is funding disbursements such as medical reports, court fees and even claimant travel primarily for personal injury law firms on a non-contingent basis.

Litigation funders give litigants a nonrecourse cash advance for a percentage of the judgment or settlement. Legal financing is not the same as a loan despite some superficial similarities to an unsecured loan from a traditional lender. Litigation Funding is typically regarded as an asset purchase or venture capital rather than a loan. Legal funding advances are not debt and are not reported to credit bureau, so obtaining a legal funding advance will not affect a litigant’s credit ratings.

Leading Funders

We’re Australia’s Premier Funders. We’ve helped dozens of law firms that see the advantages of disbursement funding and have proudly watched them go from strength to strength.

Get in touch and speak to Australia’s premier funders today.

“The tools are fast, efficient and get my disbursements paid on time with excellent status reporting.”

“Providior has become integral to our cash flow management.”

“Just keep doing what you are doing.”

“They are fast, friendly and professional.”

Talk To Us

We’ve helped dozens of law firms in your situation and have proudly watched them go from strength to strength. We’d love to help you too. Get in touch today to discuss your business and litigation funding needs, and find out how we can positively impact your cashflow, profitability and growth.

    Litigation Funding FAQs

    After a Litigation Funder has decided to fund a claim, the claimant will be given a Funding Agreement that establishes the rights and duties of both parties.

    • In addition to repayment, the funder is seeking a fee or commission attached to the amount of funding being offered.
    • In the event that the funder’s claim is unsuccessful, the funder has offered to pay the claimant’s costs. This indemnity may be provided with no limit, or may be capped at a specific amount.
    • Aside from providing funding for litigation, The Funder will offer services that include consulting with Lawyers and claimants, facilitating reports to claimants, and reviewing Lawyers’ costs.
    • The claimant’s cooperation with both the lawyers and funder, as well as following any legal advice provided by said lawyers, is essential. The claimant also agrees not to communicate with the defendants outside of court. Lastly, in cases where this is a class action lawsuit, representatives will provide lawyers with instructions on how best to manage said lawsuit on behalf of other group members.
    • The funder is authorised by the claimant to provide regularly scheduled instructions to the Lawyers so that the claim can be progressed.
    • Both the claimant and the funder may terminate the funding agreement under certain circumstances – this document outlines those conditions and their consequences.
    • The parties involved agree to keep any funding arrangements or related information about the claim confidential.

    The Litigation Funder will commence paying the legal costs associated with the litigation when the parties have agreed upon and signed the terms of the funding arrangements.

    A Litigation Funder’s role generally includes monitoring the case, but this can differ depending on the situation. They are often able to give instructions to Lawyers, with Representatives being able to do the same.

    A litigation funder’s fee depends on numerous factors like: the strength of the argument being brought to them, an estimation of what the argument is worth, and where they are in relation to other similar cases.

    How quickly a claim is resolved is crucial because if it takes too long, the Litigation Funder will have to wait to get its money back and won’t earn any interest while waiting. That’s different from a regular loan, where you do earn interest while you’re waiting for repayment.

    A third party litigation funder will usually only agree to finance a claim if they are guaranteed to be repaid in full, plus an additional fee or commission upon the completion of the case. The average commission charged by these funders generally falls between 20-40%. In some cases, the fee may be charged as a multiple of the investment instead of being based off of a percentage of the claim’s outcome.

    A Litigation Funder may ask the court to make a common fund order (CFO) if the Funder has financed a class action that settles or succeeds at trial. A CFO typically entails class members repaying the Funder’s costs plus a percentage-based fee on total claim proceeds, regardless of whether each claimant signed a funding agreement.

    Any deductions from a settlement or judgment in a class action that has been started in Court can only be paid if the Court approves of them as being fair and reasonable.

    It is not often practical for an individual claimant to bring forth only their ownclaim in a class action setting because the costs and risks associated withlitigating an individual claim are often greater than the value of the claim itself.

    A litigation funder’s involvement in class action lawsuits helps ensure that cases are decided based on their legal merits rather than how much money each party has to spend. This is important because it provides equality of arms in our adversarial civil justice system—which is necessary in order to achieve justice. Class action lawsuits typically involve large sums of money, so this system is essential in ensuring that everyone has a fair chance, regardless of their financial situation.

    From a psychological standpoint, involving a Litigation Funder tells the other side that there is an individual or institution who believes in the case.

    Financial risks

    If a Litigation Funder provides an indemnity against adverse cost that is capped, and the claim does not succeed, then there is a financial risk for the party that was funded for litigation. This happens when they have to pay the amount of money that exceeds the cap set by the funder.

    Funding is terminated

    Under certain circumstances, The Funder may end the funding agreement. These include if the chances of winning the case go down significantly, or if the amount of money being claimed falls below a set level. If the person or organisation receiving funding can’t find another source of funding, they may have to stop their case.

    Ultimately, the difference between disbursement funding and litigation funding comes down to risk profile.

    Disbursement funding, as the name suggests, only funds third-party costs (ie disbursements) of a personal injury matter that a law firm incurs on behalf of their clients. This includes the funding of medico-legal reports, radiology reports, court appearance and filing fees, barrister fees and all other expert reports/expert witness fees. Depending on the product, an interest rate and fee is charged with repayment of all delayed until term or until the matter settles whichever is first. Disbursement funders are not contingent on a successful outcome – repayment is required even if a case is unsuccessful.

    Litigation funding provides capital to claimants, law firms or companies secured solely by the future proceeds of their cases and legal claims. They fund a wider range of matter-related expenses. However, if a case is lost, repayment is not required  –  the litigation funder assumes that risk. Therefore, given the higher risk profile, rates and charges are higher for litigation funders than disbursement funders.

    The advantages of litigation funding will be different for every claimant. If someone doesn’t have a lot of money, litigation funding can help them bring forth claims that might not be heard otherwise and go all the way to trial if necessary.

    Removing the financial risk of litigation from the claimant’s balance sheet and transferring it to the funder’s enables the well-resourced to prevent the diversion of funds earmarked for other purposes that would otherwise be spent on potentially costly and uncertain litigation.