FAQs

We will be bringing you useful FAQs and resources to help you engage with your clients around litigation funding.

What is the minimum amount of litigation funding?

For one off commercial litigation claims our panel has a minimum funding amount of £50,000. This is dependent on quantum and case merits.

For scheme funding (class-action) we have funders that will go as low as £10,000. Again, dependent on quantum and case merits.

What is the maximum amount of litigation funding?

There is no maximum amount of funding available for litigation claims. Many funders on our panel will fund into the millions based on the strength of the case.

For our Fast Track product, which automates the funding decisions, there is a maximum of £500,000.

How much information does Sentry Funding need to make a litigation funding decision?

The Sentry Portal can generate a decision in principle (DIP) based on limited information about the claim. The average DIP takes less than 5 minutes to complete.

Once we have an agreed DIP we work with you to present the case to funders. The Sentry Portal is fully interactive and gives access to funders and ATE providers meaning our processing times are dramatically quicker than applying direct to a funder or through a manual process by a broker.

Why would I use Sentry Funding? Is it not easier to work directly with a funder?

Many solicitors who have experience in raising litigation funding tend to use one or two of the major big brand funders. This isn’t best practice for your clients, as by only obtaining quotes or decisions from a select few funders you are limiting your clients choices and potentially raising non-cost effective funding.

By using the Sentry Portal you complete one form and the system assess the claim vs 16 different funders and 8 ATE insurance providers. For someone to conduct this research manually would take weeks of work.

Who can apply for litigation funding?

Sentry Funding only accepts cases from solicitors and we only fund claimants. Currently our portal is designed for commercial litigation and scheme funding but we are working on expanding this offering.

What are the advantages of litigation funding?

Litigation can be an expensive process and cost prohibitive to some. Litigation funding promotes access to justice meaning smaller businesses and individuals can afford to litigate against large corporations.

Having litigation funding invested in a case also adds weight to a claim, showing the defendant that you are prepared to take the case through the courts and that third parties believe in the merits enough to back the claimant.

Litigation funding is also a good solution for businesses looking to manage their cashflow. Rather than tying up funds to litigate they can use their cash to invest in their business whilst a litigation funder takes care of the necessary capital to litigate.

Does a litigation funder need to fund the full costs or can they fund only part of the claims costs?

You and your client can choose the appropriate amount of funding required and it does not need to be the full amount of costs.

By sharing the costs you reduce the amount of interest or award you ultimately pay to arrange the funding.

How much does litigation funding cost the client if a case loses?

Litigation funding is a non-recourse investment, meaning if your case loses there is nothing to repay to the funder. This is the risk they take and assess when investing in cases.

You will be liable to pay the others sides costs though, which is where ATE insurance comes in. The correct ATE policy is vital to ensuring all the claimants and defendants costs are covered if the case loses.

How much does litigation funding cost?

This is very much case dependent. There are a mix of different ways funders charge for their investment into a claim:

  • Share of the award. Commonly funders will look to receive a percent or fixed sum of the case winnings.
  • Interest. Funders can charge an interest rate on the capital provided over the time the funding is being used.
  • A mix of both a share of the award and interest.

By using Sentry Funding we assess the case and find the most suitable and cost effective solution for your client and their claim.

How much does ATE Insurance cost?

This is case dependent but as a rule of thumb you would expect the total premium to be in the region of 40% of cover. Which can be paid over various stages as the claim progresses and risk increases.

By using Sentry Funding we assess the case and find the most suitable and cost effective solution for your client and their claim.

Is litigation funding in the UK regulated by the FCA?

No. Currently litigation funding is not regulated in the UK.

The Sentry Funding Portal has however been designed with regulation in mind for any possible future change to regulation of the market.

Our leadership team have a FCA regulated background and understand what regulation entails. The Sentry Portal keeps time stamped records and an organised digital case file which promotes good compliance practices.

Do litigation funders have any control over the case?

No. We only accept funders on our panel that contractually have no control over cases.

There are funders in the market that do and can force claimants to settle early or decline settlement to suit them. This does not comply with our code of conduct.

How does Sentry Funding generate revenue if the portal is free to use?

We receive our income only once a case is funded.

On all winning cases we will receive a share of the funders share of award. For some cases we will also receive an upfront arrangement fee upon signed acceptance of a litigation funding agreement. This fee is added to the funding amount drawn.

If a case doesn’t receive funding, we do not get paid and the portal is still free to use. If a case loses we do not make a return.

This means it is in our interest to make sure your cases are funded appropriately.

Where does Sentry Funding fit in the litigation funding market?

This is a common question we receive as we have created a new niche in the market. The closest comparable service is that of a broker, but we use revolutionary technology that gives solicitors more power and access than the traditional broking model.

The Sentry Portal allows solicitors to complete one form online and receive a decision from 16 funders and 8 ATE providers. The portal also acts as a case management system that runs a transparent digital case file for solicitors, funders, ATE providers, barristers and cost lawyers.

Is Sentry Funding a litigation funder?

No. We are a SaaS (software as a service) technology provider that gives solicitors digital access to the UK’s largest panel of litigation funders and ATE providers.

We act as a broker between solicitors, funders and ATE providers to ensure claimants are getting the most efficient and costs effective solution to their funding and insurance needs.

The Sentry Portal also acts as a case management system that runs a transparent digital case file for solicitors, funders, ATE providers, barristers and cost lawyers.

Get in touch to discuss how Sentry Funding can work for you

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