Arbitration funding implies the provision of funding assuming the payment of part or all the arbitration costs, as well as award enforcement and award monetisation, supporting entities to pursue their claim and secure an award, whilst minimising risk.

A successful arbitral award is often not the end of the arbitration process. Claimants who have obtained a successful arbitral award could require additional support to get through the annulment and/or enforcement stages to ultimate recovery. This type of funding provides claimants with the certainty of access to an immediate cash facility upon a successful award, while taking on some of the risk of potential annulment and/or enforcement proceedings.

There may also be scope for claimants to monetise arbitral awards before the respondent has satisfied the award. Cash flow following lengthy arbitrations can become major issues for law firms and claimants alike as they face further delays in the realisation of any award.

Moreover, there are a range of different types of arbitration funding solutions relating to arbitration, from single arbitrations to a portfolio, where the investment and return are spread across a number of different arbitrations.