Financing litigation can be quite a complex process and varies depending on the country, type of case and parties involved. Here are the main methods of financing:

1. Own funds
This is the most common method, when the parties pay for lawyers' fees, court fees and related expenses from their budget. This is especially relevant in civil cases, where both parties are interested in a quick and high-quality resolution of the dispute.
2. State funding (free legal aid)
A number of countries have state aid programs. For example, in Russia, you can get a free lawyer in the event of criminal prosecution or to protect the rights of socially vulnerable categories. In the UK, there is a Legal Aid system that covers legal costs for low-income individuals.
3. Litigation funding: https://vtlcapital.com/services/litigation-funding/
Firms or funds pay legal costs in exchange for a percentage of the possible win. This is a risky model, since the funding party loses money if the case is lost.
4. Insurance
Some insurance companies offer policies to cover legal costs. This is called “legal defense insurance.” It covers lawyers, court fees, and possibly compensation to the other party if the case is lost.
5. Contingency Fee
In Anglo-Saxon countries, lawyers may work for a percentage of the winnings. If the lawyer wins, he or she gets a portion of the money, and if the lawyer loses, he or she gets nothing. This is suitable for cases involving large compensation, such as personal injury compensation claims.
6. Crowdfunding
In recent years, with the development of the Internet, it has become increasingly popular to finance legal cases through crowdfunding platforms. This method is used for socially significant cases or to support civil activists and organizations.
Each of these methods can be used alone or in combination with each other, depending on the type of case and the capabilities of the parties.