If someone hurts you and you think it was because of someone else, you can file a lawsuit. In the same way, companies are often involved in court cases. The competitive market and "unfair competitions" may also be to blame. Here, even small disagreements about how a business is run or a business transaction can lead to a lawsuit.
Different things could cause the companies to disagree. These can include the wrongful firing of an employer or employee, a breach of contract, a dispute over insurance, a partnership, shareholders, bankruptcy, and so on. Such disagreements over business deals can hurt that company's business. For example, one of the two companies in a partnership might secretly work together with a third party. There is a breach of trust, and the other company has lost money because of it. This company can sue its partner company because it was "cheated."
Lastly, the two companies at odds try to settle their ongoing case in court. The legal term for this is "commercial litigation." Companies, like people, use the help of an experienced lawyer to look out for their best interests. For a possible fee, the lawyer files the case. With the help of the lawyer, the company in court asks the Litigation Financing Company to pay for its costs. The case is looked at by the company that provides Litigation Financing. If the case seems strong enough, the company will give an advance, which is often called a "litigation loan." These are pre-settlement loans that can't be taken back. This means that the company will only get its recovery fees if the company it is working for wins the case. But a lawyer is needed to make sure that Commercial Litigation Financing is done right.
