In the current Covid-19 scenario dispute finance can be a useful alternative to corporate finance tools.

Government-imposed shutdowns are having serious financial implications for construction companies involved in international projects. Managers are having to choose between competing priorities for allocation of scarce liquidity. The question often boils down to: “Whom do I pay first?”

Dispute finance can provide an alternative option to corporate finance tools: Instead of allocating existing financial resources to arbitration or award enforcement – thus denying financial support to other strategic business areas – managers can consider external funding sources from specialist litigation funders. Third-party funders provide non-recourse funds and are remunerated only if the company wins the case.

We have seen an increase in applications for third-party funding in recent months.

Our International Arbitration Focus Team and the litigation funder Omni Bridgeway highlight the advantages of involving a litigation funder and describe the assessment process here.