1&20 litigation funding is so-called to reflects its simple pricing:
– 1% per month on drawn amounts;
– 20% of net damages;
This compares favourably to the pricing model used by most funders and is unique in having a fixed price. It’s simple, transparent and competitive.
Solicitors have a common-sense obligation to report any material changes. Separately, 1&20 litigation funding has a simple monthly reporting sheet which solicitors need to complete. Mindful that unnecessary costs should always be avoided, it is designed to be the most efficient and cost-effective method to monitor a transaction.
Historically, the litigation funding market has only funded cases where solicitors act on a Conditional Fee Agreement (CFA) or a damages-based agreement (DBA).
At the same time, solicitors can only run a limited number of their caseload on a CFA or DBA basis. This means many meritorious claims are often not realistically considered for litigation funding.
We believe 1&20 should fund any claim which we believe has strong legal merits. As such, 1&20 litigation funding will fund cases even without a solicitor being on a CFA – the first litigation funder to explicitly state so.
1&20 targets sub-£10m claims which are underserved by the current litigation funding market. Many sub-£10m claims are economically viable, and straightforward, and simply require funding to proceed.
Litigation is not only complex but expensive and risky. 1&20 is only available for cases that have the appropriate ATE Insurance (and where applicable Financial Guarantee Insurance).
This means that 1&20 litigation funding is not only a solution to funding litigation but also a means to de-risking litigation for claimants, ensuring claimants will not incur any financial loss for losing a claim.
1&20 aims to provide an in-principle decision within 3 days. This includes declining the opportunity to fund a case, so that we do not waste our customers’ time and costs.
For those where an in-principle decision to fund is given, further due diligence will be required, further questions and requirements from Sparkle to the claimant’s solicitor.
Provided the process does not raise any major issues or omissions not already disclosed in the original application form, formal terms will be offered and monies available for drawdown within 14 days.
To read about our Application Process, please click here