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No Win, No Fee Commercial Solicitors – How do CFAs Work?

No Win, No Fee Commercial Solicitors – How do CFAs work?

no win, no fee commercial solicitors

Understanding the complexities of commercial law can be a daunting and costly endeavour for businesses of all sizes. For many, the thought of engaging legal services is overshadowed by the fear of excessive fees, especially in commercial litigation.

No Win, No Fee arrangements allow businesses to pursue or defend claims without the immediate burden of legal costs. This ensures that the solicitor’s interests are aligned with their clients.

No Win, No Fee commercial solicitors offer a practical solution for companies facing legal disputes, whether it is a breach of contract, professional negligence, intellectual property issues, or other commercial matters.

At Annecto Legal, we connect clients with the right commercial solicitors and dispute resolution team to handle their claim effectively. Additionally, we can assist in securing litigation funding for your case.

What is a no win, no fee agreement?

A no win, no fee agreement, also known as a Conditional Fee Agreement (CFA), is a type of arrangement between a solicitor and a client in which the client is only required to pay solicitor’s fees if the claim is successful.

The solicitor’s fees are dependent on the outcome of the case. If the case is won, the client pays the solicitor’s fees and typically an additional success fee. If the case is lost, the client does not pay the solicitor’s fees.

The success fee is an additional amount on top of the solicitor’s standard fees, such as hourly rates. It compensates the solicitor for the risk they take in not being paid if the claim is unsuccessful. This fee is usually a percentage of the costs incurred.

Choosing the right solicitor

When choosing a commercial solicitor, it is imperative to select a solicitor with the relevant specialisation for your case to ensure that they can provide the best legal advice for a favourable outcome.

You should opt for a solicitor with the experience and expertise to deal with your case in the most efficient and cost-effective manner. Furthermore, considering how your solicitor will be perceived by the opposing party is essential.

Moreover, you might want to evaluate your solicitor’s willingness to work on a risk-sharing basis and their experience in dealing with legal funders and insurers. These factors can significantly impact the trajectory and success of your case.

Seeking guidance from specialist no win, no fee commercial solicitors as soon as possible can assist in assessing your eligibility to file a claim and to ensure that the claim is made within the specified limitation period.

No win, no fee funding and insurance

There are litigation funding methods that can be used for cases on a no win, no fee basis. Alternative funding methods can help clients to mitigate financial risks and fund litigation. These methods include:

After the Event Insurance (ATE insurance) – An ATE insurance premium can be thought of as a ‘swap’. For either no upfront cost or a small upfront fee, the insurer takes on all of the risk of the potential adverse cost award. Therefore, the client has swapped their obligation to pay the defendants in the event of a loss with the obligation to pay the insurer in the event of a win.

This can be an attractive swap as the client is likely to be in a better financial position following a win than following a loss. Also, the payment to the insurer will only be a percentage of the adverse costs rather than the entire amount.

The actual amount the client will be expected to pay for this legal expenses insurance will depend on the length of time it takes to settle the case. 


Third Party Funding (TPF) – TPF is a funding arrangement in which someone with no prior connection to the dispute agrees to finance all or a part of the legal costs in return for a fee payable from the proceeds to be recovered. TPF is often used in conjunction with other available funding options, such as conditional fee agreements and damages-based agreements.

Third party litigation providers take on the risk of your litigation finance, freeing up your cash flow and shifting the risk off your balance sheet. In return for mitigating the risk, the funder will typically seek in the region of a fifth to a third of any damages recovered. This means that the client will keep up to 80% of the reward, whilst taking none of the risk.

In many cases, third party funders will require a solicitor to give an independent assessment of a case and its prospects of success before they agree to provide funding. If your case is unsuccessful and you lose your case, you will not be required to pay.

Annecto Legal can discuss the various types of litigation funding methods available to you and help determine which method is best for your case. 

How can Annecto Legal assist?

At Annecto Legal, our team of professional advisors help clients to identify suitable No Win, No Fee commercial solicitors for their cases. With the right legal team, it is possible to put in place the appropriate litigation funding and insurance to take the case all the way to court proceedings, if necessary.

If you are thinking about bringing a claim, contact us today for a free initial consultation. We can help find you the right representation, as well as managing your financial risks and sourcing alternative funding for your legal fees.

Unfortunately, because of the high costs of legal actions in the UK, we only assist in commercial disputes in which the financial value of the claim is over £250,000, at the absolute minimum. We would like to be able to help on other claims, but we just don’t have access to any products that can assist on smaller.

Get in touch

* Annecto Legal can only assist on case where the loss is in excess of £100,000, with the exception of data breach claims. If you need assistance on a claim worth over £100,000, please get in touch using our form or the details below:

Registered Office

Annecto Legal Ltd, 106 Kennedy Building, Murray Street, Manchester , M4 6HS


0800 612 6587


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