Litigation funding in Finland: Nordic efficiency with financial support
Litigation financing by third parties (third party funding) has evolved from being a marginal practice to becoming a key tool for balancing access to justice, distributing risks, and facilitating the resolution of complex disputes. In Finland—a country with one of the most efficient and reliable judicial systems in the world—this model has a still limited but increasingly relevant development in the context of international arbitration and high-value business litigation. Loopa, as a specialized international fund, identifies Finland as a jurisdiction with high potential for the expansion of the model.
History of third party funding in Finland
Third party funding in Finland is relatively recent and still underutilized compared to other European jurisdictions such as the United Kingdom, Germany, or the Netherlands. The low cost of litigation and the high accessibility of the Finnish judicial system have historically meant that there was not perceived to be an urgent need for external financing. However, this situation is changing. As Finnish companies engage in more complex international disputes—especially in arbitration and cross-border trade—the model is starting to be seen as a useful tool for outsourcing risk and freeing up operational capital. The country's most sophisticated law firms, as well as players in the financial world, have begun actively considering third party funding as a viable option in large-scale cases. Loopa is poised to lead this development in Finland, bringing expertise, capital, and a legal structure adaptable to the particularities of this highly institutionalized environment.
Legal framework: continental law and contractual freedom
The Finnish legal system belongs to the tradition of civil law (continental) and is characterized by a strong respect for contractual freedom. There is no specific legislation regulating third party funding, but there are also no rules prohibiting it. Financing contracts between individuals are valid as long as they respect the general principles of law: legality, good faith, transparency, and non-contradiction with public order. The assignment of credits is legal and can be used to structure financing agreements in which the funder acquires or participates in the client's litigation rights. This assignment can be partial or total, and is clearly regulated within the Finnish Civil Code. In addition, lawyers can agree on contingent fees in certain cases, suggesting an openness to the shared risk model that also underpins third party funding. Finland, as a highly transparent and predictable jurisdiction, offers a legally secure environment for Loopa to operate, respect the independence of the lawyer, and collaborate with litigants under clear and reliable conditions.
Arbitration application: a favorable and professional environment
Finland is recognized as a safe, neutral, and efficient place for the administration of commercial arbitrations, especially in northern and eastern Europe. The Finland Arbitration Institute (FAI), based in Helsinki, is one of the most prestigious arbitration institutions in the region, and administers both domestic and international arbitrations under modern rules aligned with UNCITRAL standards. Although the use of third-party funding in arbitrations based in Finland is not yet common, the international trend is leading to increased acceptance. The FAI rules do not prohibit the participation of funders, and the disclosure of their existence is encouraged when appropriate, in line with the principles of transparency and procedural fairness. Loopa is prepared to finance arbitration proceedings in Finland, covering everything from legal representation costs to expert fees, technical translations, or institutional fees. We also strategically support funded parties to optimize resources and increase the chances of success in highly complex disputes.
Application in judicial disputes: efficiency does not always mean immediacy
The Finnish judicial system is efficient, digitalized, and relatively low-cost. However, in cases of high complexity, commercial disputes, or litigation with an international component, processes can still be prolonged or involve significant economic burdens for the parties. This is especially true in enforcement litigation, intellectual property disputes, insolvencies, or class actions. In these cases, Loopa can offer value by monetizing the litigation, advancing part of the economic value of a claim so that the plaintiff can have liquidity without waiting for the final outcome. This is useful for both individuals and companies that need to optimize their cash flow or mitigate the financial impact of a prolonged legal process. Furthermore, financing allows for strengthening the legal strategy, hiring independent experts, preparing robust evidence, and maintaining a strong stance against counterparts with greater resources. In Finland—where equity is a guiding principle of the legal system—third party funding can contribute to preserving that equity fairly.
Conclusion: a strategic opportunity in the heart of northern Europe
Finland combines the best of institutional stability with a modern and respected legal ecosystem. Although third party funding is still in its early stages of adoption, the conditions are in place for progressive and sustained growth, especially in arbitration and complex business litigation. Loopa, as an international fund focusing on efficiency, legal merits, and strategic alignment, offers a proposal tailored to this environment: transparent financing, respectful of legal independence, and structured to maximize the value of each case. In a country where trust, legality, and predictability are fundamental values, litigation funding has everything to establish itself as a legitimate and transformative tool. Because even in the most efficient systems, justice is also built with resources.
