While structured settlements are generally advantageous, they do have one disadvantage: the settlement holder is prevented from accessing most of their cash. This might be an issue when an emergency arises, such as an urgent home repair, high medical costs, or the prospect of foreclosure on a property.
Structured settlements cannot be used as collateral for loans under the rules that allow them. While some companies claim to provide structured settlement loans, this is not the case. On the other hand, structured settlement holders can sell all or part of their future payments to structured settlement companies.
What is a Structured Settlement Company?
Factoring firms, often known as structured settlement companies, let people sell their structured settlement payments. These firms give settlement owners lump sum payments in return for future payment rights or portions of future payments. The secondary market refers to these transactions between the settlement annuity holder and a third party.
How These Companies Work
Purchasing firms, such as We Pay More Funding, work closely with settlement sellers to guide them through the legal process of transferring payments in return for a lump sum. Although the procedure might be scary, it is the company’s responsibility to make it as simple and painless as possible.
When consumers approach firms about selling their payments, the companies gather information and calculate an offer. The purchasing company sends the seller a contract that details the offer and any conditions or charges. The buyer then submits the proper paperwork and schedules a court hearing once the contract is signed.
