Power Your Case. Win with Confidence.
Unlock the full potential of your case with risk-free commercial litigation funding. We provide the capital you need to pursue high-value legal claims, so you can focus on winning.
Focus on patients while growing your practice with medical lien receivables funding from Mustang Funding. Expand facilities, take on new patients, and more.
If your business has a need for a capital injection, Mustang Funding offers special situations investing solutions tailored to your needs.
Commercial litigation funding is a financial solution that provides businesses and law firms with the capital needed to pursue legal claims without bearing the upfront costs. This funding is particularly useful in high-value commercial disputes, where legal fees and expenses can be substantial.
What is commercial litigation funding
Litigation funding is a non-recourse investment, meaning the funder only receives a return if the case is successful. Here’s a general process:
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.
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 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.
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.
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.
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.
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 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.
To learn more about attorney and law firm funding and its benefits for your practice, contact Mustang Funding today. Our team of experts has a combined 100+ years of experience in the finance industry and 50+ years in litigation finance.
Mustang Litigation Funding works with capital partners and affiliated entities to provide a non-recourse cash advance to an individual. All non-recourse cash advances are subject to review and approval. Not all cases or requests will qualify. Certain states regulate non-recourse cash advances and may disqualify an applicant from receiving a non-recourse cash advance from Mustang Litigation Funding or its partners/affiliates.
This web site is for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal, or investment advice. You should consult your own tax, legal, investment advisors before engaging in any transaction.
