Should I Sell My Structured Settlement? A Deep Dive Into Working With Factoring Companies

You might have recently–or in the somewhat distant past–received a cash settlement for a lawsuit involving:

• Medical malpractice
• A workplace injury
• Wrongful death

The grand total might be satisfactory enough to cover your pain, suffering, bills, losses, and/or maintain a reasonable quality of life. All the same, there’s more to the story than one might think.

Unfortunately, it’s not always a simple matter of getting the money and moving on with your life in unencumbered financial comfort.

There is red tape to navigate that can prevent you from capitalizing on available financial opportunities to solidify your future. Moreover, you might even struggle to keep up with standard monetary responsibilities, despite being the recipient of a sizeable settlement.

Overcoming this issue requires your understanding of structured settlements and your learning about companies that buy structured settlements.

Let’s explore these topics further below:

What Are Structured Settlements?

When you win a civil lawsuit, an individual or a company pays you a reward to cover your injuries and damages, offering you financial security.

At no point do settlement payments fluctuate the same way as bonds, stocks, or mutual funds. They’re also tax-free.

Provided a lawsuit is settled for a small enough amount, the reward can be doled out in one lump sum. When the total settlement is larger, the structured stream of installment payments is sent out over the long term.

The at-fault party sets up these arrangements by putting funds into an annuity. This financial product ensures an insurance company is responsible for making regular payments on time.

A structured settlement agreement ideally guarantees more long-term financial security than a lump sum–which can be blown through quickly.

Such arrangements can prove fruitful for the plaintiff/recipient. However, in many instances, the slow drip of funds turns out not to be enough, often due to a change in the recipient’s life circumstances.

In which case, it will serve you to learn about selling your structured settlement. More specifically, you should perform research on who buys structured settlements.

Who Buys Structured Settlements?

We Pay More Funding is a quick answer to “who buys structured settlements?” However, we’re among many companies that buy structured settlements.

Companies that buy structured settlements are also referred to as factoring companies. They can purchase the entirety of your future annuity payments or a fraction of them for the price of a lump cash sum.

Finding reputable structured settlement companies isn’t necessarily cut and dry. You need to do your due diligence to get the offer you deserve and to make sure you aren’t preyed upon by potential scam artists.

Finding The Best Structured Settlement Companies

Shopping around for companies that buy structured settlements necessitates that you know what you’re looking for.

Yes–checks and balances are present in the secondary market, providing a degree of protection to individuals desiring a structured settlement buyout. Still, doing your homework on any prospective purchasing company is essential.

First and foremost, the first line of defense against scams and predatory practices is to familiarize yourself with your current and long-term financial objectives. Performing this legwork ensures you won’t be nearly as susceptible to nefarious factoring companies looking to leverage your vulnerability.

Here’s an example to better illustrate the predatory practices we’re talking about:

Imagine you need $15,000 for debt on a high-interest credit card. Suppose the factoring company pressures you to sell $30,000 worth of your annuity payments in this instance. Can you trust them? Absolutely not.

A reputable buyer will get to know you and understand your needs, working as your partner and offering you the best possible price at a discounted rate.

Make it a rule to avoid the company trying to force you into a rushed decision to sell. Given the complex nature of selling your future payments, trustworthy companies that buy structured settlements will help you weigh the many factors involved. Any offers will come after they know you’re comfortable.

What To Look For From Companies That Buy Structured Settlements

A trustworthy company who buys structured settlements will have helpful and empathetic customer service representatives ready to offer support. There will also be several ways to contact that company.

Look For Stable Business That Can Make You A Worthy Offer

Reliable structured settlement companies should also be financially stable and have no bankruptcy history.

Consistently plentiful access to capital and general financial stability allows companies that buy structured settlements to make competitive, worthwhile offers for your future annuities.

Licensing And Regulatory Compliance Are Top Priorities

Competitive offers mean very little if a company who buys structured settlements isn’t licensed and fails to follow the correct regulations. Ensure your factoring company of choice is above board, with their t’s crossed and i’s dotted.

A Clear Track Record For Good Business Practices And A Transparent Approach

You’ll be well-served by looking up prospective structured settlement buyers through the Better Business Bureau and Google Reviews. Only a factoring company with a stellar BBB score and top notch Google Reviews should do.

Moreover, transparency is absolutely critical, and reputable companies that buy structured settlements offer clear timelines for you to receive your lump sum.

Look For Companies With Expertise In State Laws, Are Discount Oriented, And Prepared To Make Upfront Cash Offers

Structured settlement companies worthy of your trust will also be experts in state laws. Additionally, they’ll be open and honest about discount fees and rates while offering you a specific amount of upfront cash.

Your Best Interest Should Be Of The Essence

Integrity is a top priority with companies that buy structured settlements. Undoubtedly, they want to make money like anybody else, but not at the cost of your financial future.

Thus, all structured settlement companies worthy of your business will insist that you discuss your buyout with an accountant or lawyer before reaching a final decision.

Don’t Be Afraid To Ask Your Prospective Structured Settlement Companies These Pressing Questions.

As the old saying goes, there’s no such thing as a bad question–especially when it comes to your finances.

So, don’t be afraid to inundate companies that buy structured settlements with questions to ensure you get the best possible deal.

Here’s what you should ask a company who buys structured settlements:

• How lengthy is the selling process?
• Do your lawyers manage the court approval process?
• Are you certified and licensed? If so, what agencies are you licensed with?
• What’s the expiry date for my free quote?
• How long has your factoring company been around?
• Are there additional fees that will get tacked onto the structured settlement buyout?

Ideal Candidates For Selling Future Annuity Payments To Companies That Buy Structured Settlements

Structured settlements aren’t a one-size-fits-all solution. They come in many sizes, shapes, and forms.

In certain instances, it’s wiser to reap the benefits of slow-drip payments. Doing so can ensure you don’t blow through your funds while ensuring long-term financial security.

The above scenario isn’t always the case, though.

Certainly, a structured settlement setup might have been perfectly suitable when the agreement was reached. Yet, inflation, personal circumstances, an ever-changing world, and many other factors can render your installments not good enough as time goes by.

At We Pay More Funding, we’re not one of the thoughtless, profit-obsessed companies that buy structured settlements. Instead, we work with you to decide if a buyout is the best option for your circumstances. Our clients aren’t just a number to us, and we only want to purchase your future payments if it’s to your benefit.

We’re also not going to pressure you into selling more of your structured settlement than is necessary.

With that said, here are situations where you’ll want to work with a reputable company who buys structured settlements (like We Pay More Funding):

You Are Making A Significant Purchase

The average price of a home in the US is near $400,000 and only promises to go up. Buying a reliable car isn’t getting any more affordable either and getting a business off the ground is filled with financial burdens and obstacles.

First-time homebuyers don’t have any equity to work with, making it even tougher to compile the cash for a down payment. You’re typically allowed to put down less money than current homeowners looking for a new place, but that’s not ideal.

Having more cash on hand means putting more money down on a home. You’ll reduce your overall interest and turn your house into personal property much faster than putting less money down.

With cars, more cash on hand is the difference between ending up in a safe, reliable vehicle and driving around in a lemon that costs you a fortune in repairs in the long run. It also helps you avoid unpredictable lease payments.

As for owning a business, a large lump sum of cash means you don’t have to rely on investors who’ll be stingy about funding a first-time owner. Without that substantial capital, it’ll be impossible to pay high commercial real estate expenses and all the other overhead, including salaries and equipment costs.

All of these scenarios can impact people who’ve been rewarded structured settlements. They often received an annuity payout after a childhood accident, and it was enough to cover living costs back then. They now need help with these major benchmark purchases, and the slow stream of money that was sufficient before is no longer enough.

If this sounds like you, finding a reliable, conscientious company who buys structured settlements could be a significant financial difference-maker.

Be mindful that these purchases are long-term investments. Striking now instead of waiting means long-term benefits.

In other words, while working with companies that buy structured settlements gives you an immediate lump sum of cash, it’s not just a band-aid solution. It’s a forward-thinking strategy that has to make big-picture sense.

You’re Going Through A Divorce

When some annuity holders go through a divorce, they need to sell their future payments–provided they are shared assets.

You might also be forced to sell to one of the many companies that buy structured settlements to stave off bankruptcy and general financial headaches.

Child counseling, therapy, and legal fees all add up fast. Your structured settlement could provide the breathing room and peace of mind you need during this challenging time.

Paying Off Severe Debts

It doesn’t matter the debt. We could be talking about a high-interest credit card, a student loan, a personal loan, or medical bills. The overall damage to your mental health and quality of life is enough to seek immediate solutions.

There’s then the matter of paying now to save in the future. Debts all have interest, and paying them off ASAP cuts into those additional costs that chew away at your savings. While some loan-based debts have prepayment penalties, being able to pay the loan off promptly will still save you money.

Additionally, successfully paying off your debts with a lump sum is good for your credit history, opening you to other financial and investment opportunities.

Here’s another consideration–provided you’ve amassed debt you don’t quite have control over, you don’t need to sell all of your future payments. Instead, you can sell enough of your structured settlement to get you back on track and still enjoy the remaining slow-drip income you’re owed.

Through partial sales, you’re getting an immediate solution on top of maintaining your long-term financial security.

So–Should You Sell Your Annuity Payments To Companies That Buy Structured Settlements?

Provided you fit the criteria discussed above, you should investigate who buys structured settlements.

Then, only if it makes sense for you, it could be wise to sell your annuity payment.

We must reiterate the importance of taking charge and researching prospective factoring companies–a process We Pay More Funding is more than happy to assist with. Contact us today if you want to find out more about who buys structured settlements and how selling your future annuity payments can benefit you.