Claims Acquisition

Financiers are sometimes willing to purchase claims outright directly from individual claim holders against a substantial payment. Following the sale of the claim, the purchaser owns the claim and has full control over the proceedings. The seller does not have any ongoing authority over the claims anymore and does not need be involved in any further aspect of their prosecution. Of course, the original holder might wish to sell only a portion of the claim or might agree by contract to assist in the prosecution of the claims by providing evidence in the litigation.

For companies with high-value claims, there are other ways to obtain access to capital, like monetization.

Monetization is simply the conversion of a portion of a pending claim into cash, with a legal finance provider essentially advancing capital that would otherwise be captive until the resolution and payment of the claim in question. Capital is provided upfront, without the company needing to wait for outstanding claims to resolve—offering immediate liquidity that may be used for virtually any business purpose. And because the capital typically is provided on a non-recourse basis, the company is obligated to repay the investment only following the successful resolution of the matter.