FIXED INTEREST RELEASE FUNDING
Fixed Interest Release Funding Pricing – Simple, Transparent and Competitive
Fixed Interest Release Funding charges only a Fixed Interest on drawn amounts only:
– if the case settles within 12 months, a fixed interest of 35% applied on drawn amounts only;
– if the case settles within 24 months, a fixed interest of 65% applied on drawn amounts only;
– if the case settles within 36 months, a fixed interest of 90% applied on drawn amounts only;
– if the case goes beyond 36 months, then 1% is added on to the fixed interest every month;
FIR Funding’s Fixed Interest pricing is one of a kind. It’s simple, transparent and competitive.
Fixed Interest Release Funding – Focused on an Underserved Market
Sub-£1m claims are often economically unviable for most funding products.
The fixed interest release pricing of FIR Funding makes meritorious claims for less than £1m economically viable.
FIR Funding is one of a kind and as such, it does not compete with any other product in the market. Instead, FIR Funding gives the broader claimant market more funding options to choose from.
Fixed Interest Release Funding – De-Risking Litigation
Litigation is not only complex but expensive and risky. FIR Funding is only available for cases that have the appropriate ATE Insurance (and where applicable Financial Guarantee Insurance).
This means that FIR 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.
Fixed Interest Release Funding – No Nonsense Application Process
FIR Funding aims to provide an in-principle decisionto fund 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 is given to fund, including 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
Fixed Interest Release Funding – No CFA for Meritorious Claims
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 FIR Funding should fund any claim which we believe has strong legal merits. As such, FIR Funding will fund cases even without a solicitor being on a CFA – the first litigation funder to explicitly states so.
Fixed Interest Release Funding – An Alternative to CFA
For meritorious cases, FIR Funding becomes a real alternative to CFAs for solicitors and claimants.
Under a CFA, a solicitor would reasonably charge a 100% mark-up on fees. This leaves the claimant having to fund disbursements and counsel costs, with the additional risks of Adverse Cost covered by an ATE insurance policy. Where the case is won, a 100% mark-up on the solicitor fees would become due, along with the ATE policy.
Under FIR Funding, a solicitor’s costs would be paid for by the funding, along with the disbursements and counsel costs, with the additional risks of Adverse Cost covered by an ATE insurance policy. Therefore, the claimant has nothing to fund and no further liability. So where the case is won, a range from 35% to 90% return (comparable to the 100% mark-up) on the funded amount would be become due, along with the ATE policy.
|REGULAR CFA||FIR FUNDING|
|SOLICITOR COSTS||100% mark-up||35% to 90% return|
|DISBURSEMENTS||Client Funded||FIR Funded with 35% to 90% interest|
|COUNSEL COSTS||Client Funded||FIR Funded with 35% to 90% interest|
|ATE INSURANCE||Payable by Client if Case Won||Payable by Client if Case Won|
|TOTAL – UPFRONT FUNDED||Disbursements and Counsel Costs||NONE|
|ADVERSE COSTS||Payable by Client if Case Lost
||Payable by ATE if Case Lost
Fixed Interest Release Funding – Post-Funding Reporting
Solicitors have a common-sense obligation to report any material changes. Separately, FIR 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.