Structured settlements benefit many injured people and their beneficiaries by providing consistent, reliable cash to them, which helps them earn regular incomes while they are recuperating from their injuries. They also provide those persons who couldn’t work during recovery and relied on the monthly, quarterly or annual payments for steady income. Some of them receive monthly payments, while others get the entire amount over a period of time. Whatever the case, structured settlements always provide a stable source of income for the person.
The problem comes in when someone decides to sell structured settlements in order to take a lump sum of money for various reasons. If you decide to sell structured settlements for a lump sum, you will have to give the insurance company a substantial amount of upfront fees so it can process your claim and pay you. If you do this dishonestly, the company may not pay you at all.
People sell structured settlement payments for a number of reasons. One reason is to have access to a large sum of money right away. This is possible if you contact discount rate companies or sell payments to third-party brokers who buy these payments from the factoring company at discounted prices. The discounted price is actually the difference between what the company is charging for future payments and what your original payment was.
In order to sell structured settlement payments, you need to be aware of the pitfalls involved in the purchasing process. First of all, the factoring company that you are dealing with will usually require you to invest a lot of money up-front before they will agree to purchase your payments from you. This is another reason why it is wise to hire an experienced attorney to act on your behalf when you sell structured settlement payments. Even if you are willing to spend some money, you shouldn’t risk losing too much of your money. You should also know that the more you invest, the less money you will make if you decide to hire a third-party broker to help you out with the purchasing process.
It is important to find out about factoring companies before you decide to sell structured settlement payments. To do this, you need to read online reviews and talk to people who have used factoring companies. There are also websites that contain consumer reports about these companies. When you are shopping for a company, make sure that you read the Better Business Bureau’s site as well. When you decide which broker to work with, you will need to give this broker a lump sum so they can help you sell structured settlement purchasers.
Once you get the lump sum, you will be able to access a cash advance facility so you can pay the agreed amount in a matter of weeks. Since you will be getting a discount rate, you will be able to sell structured payments at a higher price. However, you need to remember that there are some risks involved with selling payments at a discount rate. There are also risks when you work with factoring companies, so you should make sure that the payments you sell are ones that are completely worth what they will cost you.