Structured settlements are usually given as a result of winning a lawsuit by a person. Instead of a lump sum amount, the court may grant a structured settlement. This can actually become a problem, especially if you need a large sum on hand right away. Sometimes such settlements may keep owners from gaining access to funds they might need to pay a debt or buy a house.
Regardless of the need, the recipient of the settlement can’t just ask to get the whole amount. The deal is firm, and can’t be broken. A loan against a structured settlement is also not possible. But individuals who receive regular payments can sell structured settlements for a large lump sum of money to factoring companies.
Making a Decision
Most people who sell these payments are usually looking for a quick payout instead of small payments on a monthly basis. The factoring company will not give you the full amount that you are owed. Instead, due to legal and administrative costs, the factoring company will apply a discount rate of 9% to 18% and then give you a quote.
The rate will vary depending on the area you live in, the length of your settlement, and the total amount of the deal. Before you choose to sell structured settlements, it’s recommended that you ask for quotes from different companies.
The Selling Process
Before you can decide to sell the settlement payments, you need to seek legal approval. The whole thing must move through the proper legal channels. Once you get the approval, only then can you transfer the payments to the factoring company.
Contact WePayMore Funding LLC for more details.