Companies and law firms can monetize pending claims to remove downside risk and accelerate the timing and flow of cash awards.
How monetization works
Defining monetization
Simply put, monetization advances some of the expected value of a pending claim, judgment or award. It means clients can potentially unlock from 2% to 50% of pending value rather than waiting years for matters to settle or resolve at trial.
A monetization is not the sale of a claim: The client maintains control and retains meaningful upside when the matter resolves successfully.
If the matter loses, the client keeps all monies advanced.
Benefits
- Certainty: Control timing of cash flows and “lock in” guaranteed return
- Return on investment: Get capital at deal close for immediate use in the business
- Inflation hedge: Cash now will be more valuable than if delayed years for settlement or trial
- Defense solution: Advanced funds can offset other costs, including defense positions
- Flexibility: Monetization works alone or alongside funding of litigation fees and expenses, and can complement recovery insurance
- Cash preservation: Eliminate or reduce impact of litigation on operating expenses
Contact Burford to learn about monetizing a claim for your business.