Different assets. Different capital needs.

Judgments and awards

A favourable decision changes the legal position. It does not, by itself, establish when payment will arrive. Financing discussions should reflect the status of the decision, any challenge or appeal, the payer and a credible route to collection.

Judgment monetisation means bringing forward some of the value of a judgment or award before the debtor pays. The amount and terms depend on the asset and the recovery risk. These are possible structures to explore, rather than offers available for every judgment:

Sell all or part of the asset

Receive an agreed price in exchange for the rights sold. The price may be below the eventual recovery. Consider the upside given up, which risks transfer and any obligations that remain. The ability to transfer the rights requires legal assessment.

Take an advance with a share of future recoveries

Receive capital now while retaining an agreed interest in the outcome. The provider’s repayment and return come from the agreed proceeds. Compare payment priority, the remaining share and any conditions or liabilities retained.

Fund the enforcement work

Finance agreed collection costs while preserving an interest in the eventual recovery. This supplies money for the recovery process; it does not necessarily provide cash for the holder’s other needs.

Release capital in stages

Agree payments against defined conditions or recovery milestones. Distinguish money firmly committed from later amounts that remain conditional.

The Recovery Is the Asset

Receivables and law-firm portfolios

A law firm may have earned fees that have been invoiced but not yet paid, or a portfolio of matters expected to generate future fees. Those are different assets. A facility may help bridge the timing gap, but its repayment obligations, security and recourse must be understood; it should not be assumed to work like single-case non-recourse funding.

A portfolio needs more than a total face value. Timing, concentration, the quality of the underlying rights and the cash required to keep the legal work moving can materially affect the proposition.

Liquidity and retained value

Bringing future value forward may be useful, but it has a price. Compare the immediate liquidity gained with the rights transferred, obligations retained and value that may remain if the asset performs differently from expectations.

The Duration Gap in Litigation Funding