Demystifying the Legal Funding Landscape with IQuote’s Integrated Approach
The legal world can be an intimidating and expensive place. For individuals and businesses with valid legal claims, the financial burden of pursuing justice can feel like a barrier too high to overcome. Between solicitor fees and expert reports, the price tag of litigation often exceeds what most can pay.
This is where disbursement funding steps in.
What Is Disbursement Funding?
While litigation finance may cover the overall costs of a legal case, disbursement funding is a more specific type of legal finance.
Disbursements are the out-of-pocket expenses incurred by a law firm, which in this instance, consist of an independent expert report that substantiates and validates the legal claim.
In many cases, law firms are asset rich but cash-flow poor. For law firms who can't afford to pay for the expert report upfront, disbursement funders offer a solution by covering these costs in advance.
Disbursement funding is typically non-recourse. If in the unlikely event the claim fails, the disbursement is backed by an After the Event (ATE) Insurance policy, whereby the ATE provider would repay the disbursement cost to the funder.
How the Process Works
- Application & Assessment
The solicitor presents the case to a funder. The funder evaluates the merits, legal arguments, potential damages, and prospects of success.
- Agreement of Terms
If the funder is interested, they’ll offer a funding agreement outlining how much they’ll provide and what share of the damages they’ll receive in return.
- Ongoing Monitoring
While funders typically don’t control the legal case, they monitor the progress of the case and expect regular updates. For additional security, the legal case has an After the Event Insurance policy and an assignment of the case to the funder.
- Resolution & Repayment
If the case is successful, the funder receives their investment plus agreed-upon interest.
How IQuote Limited Takes a Different Approach to Legal Funding
IQuote Limited stands apart from traditional litigation funders through its innovative approach, deep legal-tech integration, and collaborative partnership model with panel law firms. Unlike conventional funders who often act as passive financiers, IQuote operates as an active stakeholder in case progression and success.
1. Selective, Data-Driven Case Funding
IQuote employs a stringent and highly selective vetting process to fund only those cases with a demonstrably higher chance of success. This is made possible through proprietary criteria and advanced analytics, which significantly reduce the risk of funding underperforming claims.
2. Technology-Backed Decision Making
Working with leading fintech firms, IQuote has helped develop groundbreaking reporting technology—the first of its kind globally—which allows panel law firms to access real-time insights. This technology is used on an exclusive basis, giving IQuote's partners a competitive edge in case management and verification.
3. Integrated RPO (Robotic Process Optimisation)
One of IQuote’s key differentiators is its use of RPO within law firms. This automated process enables constant case auditing and verification, ensuring that only compliant and qualifying cases are maintained in the funding pipeline. This proactive monitoring leads to fewer surprises, tighter quality control, and faster resolution.
4. Collaborative Partnerships, Not Lender-Borrower Dynamics
Unlike traditional funders who operate at arm’s length, IQuote fosters true partnerships with its panel law firms. Rather than simply providing capital, IQuote collaborates with firms on case strategy, direction, and progression. This results in stronger alignment of interests and better outcomes for all parties—including the end clients.
5. Real-Time CRM Integration
IQuote’s best-in-class CRM system is directly integrated with the systems of partnered law firms, offering live access to case statuses and updates. This ensures transparency, agility in decision-making, and the ability to intervene early if issues arise—something traditional funders rarely have the infrastructure to support.
6. A Framework Built from Industry Shortcomings
Drawing from insights into industry pain points and funding inefficiencies, IQuote has built a bespoke funding framework. The approval criteria are intentionally more selective, aiming to fund only those cases that can produce optimal returns for IQuote, the law firms and their clients alike.
Want to learn more?
If you would like to learn more, our team is happy to walk you through the details — simply reach out to us at cs@alta.exchange.
Get verified on our platform and unlock the full suite of alternative investments available to verified investors. Let's connect! 👉🏻 https://app.alta.exchange/signup