Structured Settlement Company

Structured Settlement Company

Settlement companies are those in the business of buying future payment streams from structure annuities. They in essence transfer the ownership of your future payments to them in exchange for a lump sum of cash.

The settlement company will work with you to first explain your options as a recipient of future payments. They should take their time to understand your financial needs so that you are exchanging the “right” amount of payments for cash to meet your need. As a seller you have options on the amount of payments you transfer. You can do one large lump transaction or a receive a smaller cash payout and keep some of your future payments intact.

Once you have work with a representative to understand your options and determined the number of payments you want to sell they will provide you with a quote on how much your future payments are worth in cash today. This is an important point as a dollar today is worth more than a dollar ten years from now. So if you are selling one dollar that is due in ten years you will receive a percentage of that dollar. A good way to think about it is to look at what you can buy in today’s dollars. How much gas can you buy for ten dollars today versus ten years from today or how much gas could that ten dollars buy you ten years ago? With inflation and other market factors your ten bucks buys less and so is worth less in the future. When a company buyers your future payments they have to factor in the “time value of money” as they don’t get paid until ten years from today when those dollars are worth less.

The settlement company will provide you with a quote on how much you can get in cash for your future payments. When you have settled on a transaction you are comfortable with the settlement company will take care of the majority of the process for you. This begins however with you getting the necessary paperwork and documentation to transfer the ownership to the buyer. They then file the paperwork in your state with the courts and will guide you through the remainder of the process. It is necessary to get a judges approval for all of these transactions but the buyer will navigate this swiftly as they have become experts at the process which takes typically ninety days to complete. In the event that you cannot wait that long to get your cash most companies will provide you with a cash advance so this is another option you can inquire about if you have the need and interest.