If you own a structured settlement, you’re likely receiving regular payments as a result of a positive outcome from a lawsuit or winnings from a lottery. These regular payments are great on the surface, but if you prefer to receive all or a portion of this income stream as a lump sum payment, you can do so by using a structured settlement annuity broker.
Their job is to find buyers for structured settlement annuities. They work with the owners of these structured settlements to help package these income streams in a way that fully represents a good investment vehicle for buyers.
Just like any other broker, they are responsible for bringing sellers and buyers together. The broker will review your structured settlement annuity and determine its lump sum value. They will go over their recommendations and evaluations with you. At that point, they will find an interested buyer. The broker will help to negotiate the deal and get it finalized. Once an agreement is made, the annuity broker typically arranges for the paperwork to be drawn up and have the monies transferred to the proper parties.
The broker receives a commission based on the value of the sale. They may charge a minimum amount but this varies depending on the particular broker involved. If you are looking to sell annuity payments, you can find qualified brokers in a number of different ways.
The first is to check with your attorney or accountant. They may have experience working with a reputable broker. You can also find them in local directories like the Yellow Pages.
There are also some helpful online forums you can check out. If you review the postings, you can often get a great deal of helpful information in this way. In any case if you follow some of these suggestions, you should be able to find an excellent broker to help you with your structured settlement annuity sale (or purchase).
Factoring Companies
The way a factoring company works if you have a structured payment that you are currently receiving compensation for they will buy it from you for a lump sum. So they will pay you less than you would get in regular payments over time but they will allow you to have access to a much larger pile of cash now.
Factoring companies make their money by collecting your annuity or structured payments over time and earn money on the fact that they paid you less than it was worth.
People usually start looking at companies who purchased structured settlement when they have a need for immediate cash. People seek this service to get out of debt, buy a house, send a child to college or retire. If you are considering the option of a purchased structured settlement you should consult with a tax professional, as lump sums often means paying a tax.
You should also have an attorney look over your agreement with the factoring company to make sure you are in fact taking a good deal. You can get a ballpark idea of how much your settlement might be worth as a lump sum payment by checking out any of the structured settlement calculators available online.
Deciding whether to sell your structured payment is a cost vs. benefit decision and once you weigh all your options, your choices will be much clearer.
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