Trust & Governance
How Underwriting Works
Underwriting is the discipline that decides which claims are funded. Every matter is assessed on six factors, legal merits, recoverability, documentation, jurisdiction and forum, counterparty capacity, and commercial proportionality, before any funding decision. The assessment protects claimants too: it is an independent, financially motivated opinion on whether a claim is worth pursuing.
Executive Summary
A funder that says yes to everything is not a funder, it is a lottery. Underwriting discipline is why a funding offer means something: capital is only committed where the claim can realistically convert into recovered value.
For claimants, underwriting is a free reality check. If a claim clears it, you know an institution examined the merits, the evidence, the counterparty and the enforcement route, and concluded the pursuit is rational.
The six underwriting factors
- 1
Legal merits
Cause of action, likely defences, limitation, precedent posture and forum realities.
- 2
Recoverability
Whether a win converts into money, the central question, assessed via the Recoverability Framework.
- 3
Documentation
Contracts, invoices, correspondence and admissions: graded for evidentiary strength and gaps.
- 4
Jurisdiction & forum
Where the matter will be fought, how long that forum takes, and what it costs.
- 5
Counterparty capacity
Solvency, assets, encumbrances and conduct history of the party who must ultimately pay.
- 6
Proportionality
Expected recovery against total cost, timeline and risk, the investment test.
What underwriting is, and is not
| Underwriting is | Underwriting is not | |
|---|---|---|
| Nature | A financial assessment of the claim | Legal advice |
| Outcome | A funding decision with terms | A guarantee of recovery |
| Benefit to you | An independent merits reality-check | A substitute for your own counsel |
| Timing | After assessment, before funding | A one-click approval |
What strengthens a claim in underwriting
- Written contracts and a clean paper trail
- A chronology that holds together without gaps
- Admissions, part-payments or acknowledgements by the counterparty
- A solvent counterparty with identifiable assets
- A claim value proportionate to the cost of pursuing it
Frequently asked questions
Is the eligibility assessment the same as underwriting? ▾
No. The assessment is a preliminary indication. Underwriting is the detailed diligence that follows for eligible claims, and it determines the actual funding decision.
Does clearing underwriting guarantee my case will win? ▾
No. Underwriting estimates probability and value; litigation outcomes are never guaranteed, and no one should tell you otherwise.
Why was a fee indicated for processing and evaluation? ▾
Detailed diligence has real cost, legal review, financial checks, counterparty analysis. The fee indication reflects the claim's complexity, value, jurisdiction and documentation.
How long does underwriting take? ▾
It varies with complexity and document readiness, typically weeks rather than days. A complete document set is the single biggest accelerator.
Related Guides
Assess your claim's recoverability
A free, structured, 5-step assessment of whether your claim may qualify for funding. Preliminary indication only, subject to due diligence.
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