Litigation financing is relatively new in the Netherlands.
Legal proceedings cost money.
Unfortunately, even if you’re in the right.
Too often, financially weaker parties refrain from going to court because of the costs and the uncertainty of the outcome. This is especially true if the other party is , or appears to be
, financially and/or legally stronger. Unwilling debtors sometimes bluff.
BMS Litigation Financing offers a solution that gives you the best possible chance of achieving justice with ZERO risk. No-cure-no-pay.
Litigation financing, how does it work?
You submit your case to BMS Procesfinanciering BV (BMS). You can do this using the application form .
However, calling or emailing your details first is faster.
After initial contact, provided both parties are satisfied, you will then fully complete the application form , which includes the minimum BMS requires for a thorough analysis and potential legal action. BMS will analyze the case and your chances of success, as well as, of course, the recoverability of any judgment against the opposing party. This analysis is free of charge and without obligation.
If BMS wishes to take over the case, an agreement will be reached. BMS will then take over your claim. BMS will then proceed and take all steps to persuade or compel the debtor to pay. This may include issuing a summons, legal proceedings, and, if necessary, an appeal. This also includes consultation with the debtor, who is now BMS’s formal debtor, including, if possible, negotiating a suitable amicable settlement.
All of this is free of charge. All costs are covered and/or advanced by BMS.
In the event of a favorable ruling and a successful debt collection process or settlement, the funds will be received by BMS. All costs incurred will first be deducted from this amount. Naturally, these costs have been recovered from the debtor where possible and are therefore included in the total amount received. After deducting these costs, BMS will pay you a large portion of the remaining amount. A smaller percentage will remain with BMS as compensation for the risk assumed and financing. These percentages are usually 70-30, but deviations may occur. This is stipulated in advance in the assignment agreement .
You can submit your case to us yourself. BMS also engages bailiffs, accountants, and other advisors if a promising case is stalled or not pursued.
Trustees hold a special position. Often, there are claims, but the estate lacks sufficient funds, time, and resources to collect them. BMS offers a good solution here as well, sometimes in collaboration with a pledgee bank.
Litigation financing is a risk-bearing investment in the costs of legal proceedings.
While relatively new in the Netherlands, it’s a proven instrument for financing legal cases worldwide.
BMS provides litigation financing for all types of claims with a claim value starting at €25,000, but usually (slightly) higher.
BMS Procesfinanciering BV also represents financially strong parties.
This is possible because we operate completely independently. As compensation, BMS receives a share of the proceeds of the lawsuit, but only if successful.
Litigation with litigation financing is therefore financially risk-free: no cure, no pay .
When a litigation funding application is accepted, we make clear agreements about our share if the case results in payment. We can’t emphasize this enough: If the case doesn’t yield any results, you pay us nothing .
In all cases that BMS acquires and/or finances, we manage the legal proceedings.
Three models
Within its core product, BMS Litigation Financing, which removes financial risks for parties with a claim against a third party, offers three different models. In all cases, the risk for you is reduced to zero, although customized solutions are always available, sharing both risk and rewards.
- BMS takes over 100% of the claim. You receive approximately 70% of the collection proceeds, including recovered costs, minus any external costs actually incurred by BMS. This is the most common model.
- 100% transfer of the claim to a third party for a percentage of the claim. In practice, this will be a relatively small percentage, but the advantage is that you can “close the book” and have cash at your disposal. This is advantageous if you are short on cash and don’t have time to wait for legal proceedings.
This is also an attractive option for trustees with complex debtor portfolios. - Financing the legal costs, while retaining your lawyer and you as a party to the proceedings. In this case, the collection proceeds will, of course, be assigned to BMS, and the fee for BMS will be around 30%. This is a customized solution. It’s necessary for highly complex cases where your input, and that of your lawyer or other advisor(s), is required above average.
In all cases, BMS assumes full management and decision-making authority within the procedure.
This is logical, as BMS finances the process and therefore assumes the risk.
Which of the three options is preferable depends entirely on each specific situation.
BMS will discuss this openly with you after analyzing the case, considering your financial position and other circumstances.
In short:
With zero risk, you have a good chance of receiving around 70% of your original claim plus costs incurred.
No costs, even if the case is lost.
BMS Litigation Financing will take over your case. You will have no further costs, even if you lose. BMS’s compensation comes from the awarded claim, not from you.
It’s a form of “no cure, no pay” – if the claim is not awarded, you will have no further costs from the moment you start working with BMS.
The formal current situation.
In the Netherlands, lawyers are not permitted to work on a no-cure-no-pay basis.
This means that if you contact a regular lawyer, you must automatically pay their hours, plus any court fees and other costs incurred through them. There is no guarantee of success.
BMS Project Financing will solve this for you.
We’ll take over the claim, cover the legal costs, and if successful, you’ll receive approximately 70% of the original claim minus any actual costs incurred.
When do you contact BMS Project Financing?
You can apply to BMS Litigation Financing for cases worth at least €25,000. These can also be cases already before the court, but this is not required.
Read here how we assess your case.
Make a quick decision.
Once you’ve fully informed us about your case, we’ll make a quick decision: whether we’ll pursue it or not.
This typically happens within 7-14 days.
You’ll never pay any assessment fees. If the decision is positive, you’ll receive our proposal. This proposal will also include the agreed-upon percentage if the case results in payment. We assess the case, among other things.
- The content of the claim;
- The value of the claim;
- Any counterclaim;
- The recoverability of the claim;
- The expected timeline and costs.
Yours sincerely,
The BMS Process Financing team.