A common misconception among first-time claimants is that a strong liability case is the main thing funders care about. In practice, experienced funders will often pass on a near-certain win against a defendant who is insolvent, judgment-proof, or difficult to locate, while taking real interest in a messier liability picture against a defendant with clear, reachable assets or an active insurance policy standing behind the claim.
This is why due diligence in litigation finance devotes so much attention to the defendant's financial position, not just the claimant's legal theory. Funders look closely at whether the defendant is a highly liquid counterparty, an insurer, a bank, a large operating company, a government body, and, increasingly, at cross-border enforceability where assets sit in multiple jurisdictions.
Post-judgment, this same logic drives an entire sub-category: judgment enforcement financing, in which capital is advanced specifically to fund asset tracing, cross-border enforcement proceedings, and local counsel after a claimant has already won but the defendant is resisting payment.