Coming into a large sum of money is generally viewed as a good thing. Yet having money and having access to your money can be two separate things, as those who enter into structured settlement agreements can attest to.
So what is a structured settlement?
A plaintiff in a lawsuit, a life insurance beneficiary, or a recipient of a lottery windfall, for instance, may be required to receive a structured settlement in which they receive the money owed to them in set amounts over time until the award is depleted rather than all at once in a lump sum. For many claim recipients, a structured settlement appears to be the preferred option as there are no tax penalties. And, let’s face it, there’s less risk of squandering when receiving the money in installments.
Yet structured settlements can pose their own set of problems, particularly if you can’t access the money that you need. Structured settlement factoring, also known as invoice factoring or account receivables factoring, is a way you can get the bulk of the money you need right away instead of waiting for installments to be fulfilled.
How a Structured Settlement Factoring Transaction Works
The invoice factoring company will take a thorough look at your settlement taking into account all elements. It will then offer you a quote based on its full value minus fees and other considerations. In essence, the structured settlement factoring will take over the entire agreement paying you the lump sum of cash and collecting the future payment installments. This way, you can get the cash you need right now to cover medical or disability costs, as is often the case if the settlement is related to a personal injury claim.
Invoice Factoring Can Prevent Taking on Extra Debt
Many people with a structured settlement just deal with consequences of it because they don’t know how else to handle the situation. However, if your needs are significant and immediate, factoring invoices may be the best way to go. It certainly doesn’t make a lot of sense to take out cash advances or go into credit card debit – and pay the fees and penalties associated with those moves – when you have money in the form of a structured settlement.
Talk to an Invoice Factoring Specialist with No Obligation to Sign
Invoice factoring companies are familiar with structured settlements and the circumstances surrounding them and are willing to work with you to provide you a fair offer. Even if you choose not to sign on with structured settlement factoring, their specialist will be willing to work with you to give you a quote, explain the terms of the agreement and more under no obligation.