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How to Sell Structured Settlements for Cash

You may need cash urgently for many reasons, including a sudden opportunity for a business investment or an unexpected bill. To get the money required for your needs, you will have to evaluate different options.

This may include selling your assets. Or if you have structured settlement payments coming in the future you can sell those. With the following few steps, you can work towards selling your structured settlement for cash.

1. Determine Your Needs

Know how much cash you need and the amount of structured settlement payments you wish to sell. You should also know that the amount of payment you get over time would be higher than the payment you will receive from companies that buy structured settlements. This is because the companies will have legal and administrative costs as well as their margin.

Numbers vary greatly based on market factors and the annuity arrangements amongst other things. For example, using rough numbers, the amount of lump sum you get from buyers might be as low as 50% of the total payments you will receive in the future. But in general, it will fall between 60% and 80%. The average discount rate applied typically ranges between 9% and 18%.

2. Shop Around for Funding Companies

Settlement funding companies are among the best buyers for your rights to structured settlement payments. The best ones normally provide free quotes, cash advances, competitive discount rates, and good customer service.

As a client, you need to look for the best company, such as We Pay More Funding, with a high BBB and Google rating. You should also consider comparing companies and their quotes before you make a final decision.

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3. Know the Sale Options

If you choose to sell your rights to structured settlement payments, know that you’re not expected to sell all the payments at once. You can sell your structured settlement in partial portion or in full, depending on the financial needs you have.

Most individuals choose to sell a specific amount of their payments and not the entire settlement. This means they will resume getting payments after a period of time. You also have the option of selling a portion of the payment, or the whole structured settlement annuity, and getting a bigger lump sum.

In general, your decision depends on your goals and financial needs. A reliable structured settlement firm will discuss your needs and offer you a good deal based on them.

4. Determine the Amount You Will Get

Selling annuity payments is a financial transaction. Since factoring companies are looking to make a profit from the purchases they make, you’re going to get less money than what your structured settlement payment is worth. But, this can be a good option if you need cash urgently and have the right type of annuity.

If you choose to sell a structured settlement for money, ensure you know the present value of your structured settlement payments and compare the discount rates of different companies. They vary greatly, but the rate may range between 9% and 18%.

Final Thoughts

Structured settlement payments are one way to settle lawsuits. In general, it can provide you with money over a long period of time as opposed to the single payment of a lump sum settlement. But if you need cash urgently, you can sell structured settlement payments with the help of these tips.

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