For CFOs & Finance Teams

Litigation Funding for CFOs & Finance Teams

For a CFO, recoverability is a working-capital and capital-allocation issue. LegalFund moves the cost of pursuing valid claims off your operating budget, so the decision to pursue a claim becomes an ROI decision, not a legal-budget decision.

Non-recourseRepayment contingent on recoveryCosts off the operating budget

The CFO case

Recoverability is a capital-allocation question

Litigation finance moves the cost of pursuing valid claims off the operating budget: funded matters have litigation costs covered under the funding arrangement, repayment is contingent on recovery, and the decision to pursue a claim becomes an ROI decision rather than a legal-budget decision.

Working capital preserved

Cash that would go to legal fees, experts and enforcement stays available for operations, growth and servicing debt.

Contingent repayment

Non-recourse funding means the funded costs are not repaid if the claim does not recover. Downside on the legal spend is removed.

ROI, not legal budget

Valid claims no longer compete with other spend. You judge them on expected return, the way you judge any investment.

No budget variance

Long-running cases stop creating unpredictable legal-cost overruns in your forecasts and quarterly reviews.

Funding options compared

Operating budget vs borrowing vs litigation finance

How the three ways of financing a claim look from the finance desk.

Operating budgetBank / NBFC borrowingLegalFund
Cash outlayLegal and enforcement costs paid from cashDraws on a facility, with interest from day oneCosts covered under the funding arrangement
If the claim failsFull spend is written offDebt is still repayableFunded costs are not repaid
Return profileKeep 100% of a win, carry 100% of the costKeep 100% of a win, repay with interestShare the win, carry none of the funded cost
Budget predictabilityVariable and open-endedFixed repayment, unrelated to case outcomeNo legal-cost variance in your budget
Decision lensLegal budgetCredit capacityExpected ROI of the claim

How a funded claim is treated in your accounts, and its interaction with any lender covenants, depends on the funding terms and your reporting framework. Confirm with your auditors.

Model it

Quick ROI view: self-funded vs funded

Enter your own assumptions. The funder share is an example input, not a quote. Actual terms are set out in the funding agreement.

Illustrative result (₹ crore)

Self-fundedFunded
If the claim succeeds
If the claim fails
Expected value, after cost of capital
Capital freed for operations0.00

Illustrative only. Assumes legal cost is spent up front and recovery is received in a single payment at the end of the period. Not a quote or an offer of funding.

Claims on your balance sheet

Receivables and claims a finance team can put to work

If it is valid, documented and recoverable, it can be reviewed for funding. Each link opens the service page.

How it works

A review process built for finance teams

1

Share the claim file

Ledger statements, invoices, contracts, correspondence and any decree or award.

2

Merit and recovery review

We assess legal merit, the counterparty and realistic recovery prospects. Initial view within 48 hours of the documents.

3

Written funding proposal

Costs covered, our share on success and the non-recourse terms, in writing, for your review.

4

We fund, you stay in control

You remain the client with your own counsel. Reporting keeps your finance team informed.

CFO questions

Litigation finance for finance teams: FAQs

Is litigation funding debt?

No. It is not a loan. Repayment is contingent on recovery, and under non-recourse terms the funded costs are not repaid if the claim fails. How it is presented in your accounts depends on the agreement and your reporting framework, so confirm treatment with your auditors.

What does non-recourse mean for my P&L?

The funded legal and enforcement costs do not come out of your operating budget and are not repayable if there is no recovery. If the claim succeeds, LegalFund is paid from an agreed share of the recovery, set out before we start.

How should we evaluate whether to pursue a claim?

As an investment decision: the claim value, probability of recovery, time to recovery, your cost of capital and the funder’s share. The calculator above gives a first-pass view of self-funded versus funded outcomes.

What size of claim do you fund?

We focus on strong claims of ₹1 crore and above. For commercial litigation we deploy up to ₹5 crore of capital per matter, as stated on our commercial litigation funding page.

Will funding affect our lender covenants?

It depends on your facility terms and how the arrangement is classified. Review the funding agreement with your lenders and auditors before you proceed.

Do we keep control of the case?

You remain the client and keep your own counsel. We fund the case and stay informed, and strategy decisions stay with you and your lawyers.

Get started

Turn a valid claim into a funded, ROI-led decision.

Send us the basics. Our team will review the claim confidentially and tell you if it is fundable and what the terms could look like.

  • Non-recourse: funded costs not repaid if no recovery
  • Confidential review of your claim file
  • Decree, award, MSME and commercial claims across India

Funding is subject to case evaluation and approval. Terms are set out in the funding agreement. This is not legal, tax or accounting advice.

Request a confidential review

We reply by phone, WhatsApp or email.