By Louisa Klouda, CEO at Legal Futures Associate Fenchurch Legal [1]
Litigation funding at scale, done the right way
As high-volume consumer claims continue to grow in scale and complexity, litigation funding has become essential for law firms and claims management companies managing these cases. It provides working capital needed to take on strong cases without straining internal resources – ensuring that claimants can access justice based on merit, not means.
But with that growth comes scrutiny.
At the recent Claims Futures Conference, the Solicitors Regulation Authority (SRA) raised concerns about the way some firms manage high-volume claims, citing issues with client care, funding transparency, and regulatory compliance. Meanwhile, the Civil Justice Council’s review of portfolio funding is calling for clearer standards and greater accountability across the sector.
At Fenchurch Legal, [2] we believe that scale and responsibility can coexist, and responsible lending is the foundation of sustainable growth. With the right structure, governance, and alignment, litigation funding can support law firms and help the sector evolve with confidence.
Responsible lending in practice
The past few years have shown what can go wrong when litigation funding is done without discipline. We’ve seen examples of law firms growing too fast, taking on claims they can’t manage, or operating without sufficient financial oversight. These failures damage trust – not just in individual firms, but in the entire consumer claims sector.
Responsible lending is how we avoid that.
Litigation funding isn’t just about injecting capital into a firm; it’s about making sure that funding is used effectively, sustainably, and in support of long-term growth.
At Fenchurch Legal, we take that responsibility seriously. We don’t fund every firm that applies – and that’s intentional. We want our partner firms to succeed, but growth must be manageable. If funding strains operations or claim volumes exceed capacity, no one benefits – not the firm, not the client, not the funder, and not the wider market.
That’s why we take the time to understand each firm’s structure, systems, and strategy before agreeing to any funding. We assess financial stability, ATE cover, case types, and operational readiness – not to create red tape, but to ensure the funding genuinely supports the intended outcomes.
Once the facility is live, the relationship continues. We monitor case uploads, check financial and performance data, and maintain regular dialogue with each firm. Our bespoke loan platform flags inconsistencies early, helping us work with firms to spot and solve issues before they escalate.
We only succeed when our borrower firms do. That’s why we tailor our funding agreements to match each firm’s growth trajectory and internal capacity. It’s about building something sustainable, together.
Due diligence is not a barrier
Due diligence is sometimes seen as a hurdle, as if funders are there to scrutinise rather than support. But in our experience, the best outcomes happen when firms see it for what it truly is: the foundation of a stable, growth-ready partnership.
Our process is clear, repeatable, and built to be collaborative. We’re not here to slow firms down; we’re here to ensure they have the structure and visibility to scale safely. That means having checks in place throughout the funding partnership to confirm case viability, system robustness, and financial soundness.
We’ve seen what happens when firms grow too fast, without the right support. We don’t want that for our borrower partners. That’s why our due diligence is designed to work for both sides – to support firms, protect outcomes, and enable sustainable growth.
And the partnership doesn’t end at onboarding. We maintain open communication, share insights, and stay close throughout the relationship. If volumes increase or case types shift, we adjust together.
Growth is the goal, but only if it’s sustainable.
Protecting the sector, together
High-volume claims are under the spotlight, and rightly so. Poor funding practices and unchecked growth have caused real damage. But the problem isn’t volume. It’s how that volume is managed.
Responsible funding can raise standards across the sector. At Fenchurch, we back firms that are set up to succeed, with proper systems, oversight, and a shared commitment to quality. We stay involved, we monitor activity, and we act quickly if something needs attention.
We want to show that funding volume claims, when done right, delivers access to justice and strengthens, not weakens, the legal sector.
Looking ahead
The future of high-volume litigation depends on doing things the right way. At Fenchurch Legal, we’re setting the standard for responsible funding by supporting law firms to grow with control, clarity, and confidence.
We’re proud to partner with firms that share our commitment to sustainable growth, transparent practices, and better outcomes for clients.
When funding is done right, everyone benefits.