Commercial Funding

Get the capital that can drive success.

We provide commercial funding to firms that want to take the next step to success. From start-ups looking to grow rapidly to established businesses looking to expand, we can help.

Table of Contents

Commercial Funding Options

Medical Lien
Receivables

Focus on patients while growing your practice with medical lien receivables funding from Mustang Funding. Expand facilities, take on new patients, and more.

Special Situations Investing

If your business has a need for a capital injection, Mustang Funding offers special situations investing solutions tailored to your needs.

Commercial Funding

Commercial funding refers to any type of loan lenders offer to help a commercial enterprise with financing. A pivotal part of corporate finance, such business loans raise capital so that the entity can meet its needs and pursue its objectives. Funding for commercial enterprises can take many forms.  

The role of commercial funding in business is impossible to overstate. Such funding provides a capital infusion for business growth and financial stability.  

Common types of commercial funding include: 

  • Commercial loans – This type of debt-based funding allows businesses to borrow funds for a variety of purposes, including expansion, the purchase of commercial real estate, assistance with working capital, or buying another business.    
  • Lines of credit – In commercial funding, a line of credit is a flexible financing source allowing businesses to access funds to purchase equipment, manage cash flow, and grow their operation. Secured lines of credit require collateral, while unsecured lines of credit do not.  
  • Equity financing – When companies offer shares to investors to raise capital, the process is known as equity financing. This also holds true when businesses sell an ownership stake for the purpose of raising capital.  

Medical Lien Receivables

When someone suffers a serious personal injury but does not have insurance, the healthcare provider issues a medical lien rather than refusing to treat an emergency case. As the plaintiff, the victim uses that medical lien receivable in their personal injury claim. With a healthcare lien, it is not the insurance company but the defendant that must pay the medical bills. Once the plaintiff receives their settlement, they pay off that lien.  

Medical liens are risky. If the patient loses their personal injury case, they must pay the lien off themselves, but most do not have the financial ability to do so. Sometimes, the settlement amount is less than the medical lien, which also means the provider must pursue the patient for reimbursement.  

Healthcare professionals treating patients in personal injury cases can find it hard to collect a medical lien, and it can take years to receive compensation. That’s where medical receivables financing comes in.  

Medical lien funding involves the purchase of existing personal injury receivables so that healthcare providers receive the cash they need. Not only does medical lien funding reduce reimbursement risks, but it may also make a difference in the lives of emergency patients.  

Role and benefits of medical lien receivables in commercial funding  

Physicians and medical companies often have cash flow management issues. Waiting to get paid for medical liens means delays in paying current expenses, expanding services, purchasing new equipment, and even meeting payroll.   

When healthcare providers are able to secure financing by selling their medical lien receivables, there is cash flow risk mitigation.   

The practical application of medical lien receivables  

The practical application of medical lien receivables goes beyond financial support for healthcare providers when it comes to litigation-related expenses. There is also a future impact on medical cost financing.  

Many healthcare providers do not accept medical liens due to reimbursement uncertainties. When providers know they are guaranteed payment through medical lien funding, they are more likely to serve this patient population.  

Special Situations Investing

Unique circumstances can give rise to unique investment opportunities. Such special situations include bankruptcy investing, mergers and acquisitions, and turnaround investments in companies in distress.  

The distressed securities of companies close to or going through bankruptcy can provide an anticipated higher rate of return while trading at a substantial discount.   

Opportunities and risks in special situations investing 

Although special situations investing offers opportunities for higher potential returns than traditional investing, it also comes with significant risks.  

For example, a bankruptcy filing usually means a company’s stock price will fall precipitously, but investors may profit from buying the stock at a low price and waiting until the enterprise emerges from bankruptcy and its value increases.  

Of course, the issues that brought the company into bankruptcy in the first place may still exist, so history may repeat itself. A great deal of market unpredictability exists.  

Role of special situations investing in commercial funding 

Special situations investing offers the potential for significant returns and diversification of your investment portfolio. Because there is also uncertainty involved in any given special situation, based on its unique circumstances, this type of investing works best as an alternative investment strategy for commercial funding.  

Strategically Leveraging Commercial Funding

Making the right commercial funding choices is crucial for any business. Successful strategic leveraging of commercial funding entails understanding your company’s funding needs, the cost of capital, and your potential return on investment.  

Commercial funding as a growth strategy 

Commercial funding plays a key role in a company’s growth strategy. Besides funding business expansion, it provides financial sustainability.  

The cash injections provided by commercial funding open investment opportunities, such as investing in products and services that grow your business.