How Your Structured Settlement Can Equal Cash

Are you the recipient of a structured settlement? Perhaps you received a structured settlement due to injury or even lottery winnings. A structured settlement means that the total amount of money you were awarded is being paid to you in payments over an extended time period. This is fine for some people, but what if you would rather have a large lump sum of money all at once? It's possible -- thanks to what are called factoring companies, also known as structured settlement companies.

A factoring company will purchase your structured settlement payments. This means they will pay you an amount that is less than the total of your settlement and take over receiving the payments. This is very much like the procedure of factoring which is done in the corporate world. Let's say a company performs a service that is worth $10,000 but is still waiting for their payment after a long period of time. The payment is coming, but the company just can't afford to wait any longer for their money. A factoring company might come in and offer to buy the payment for $8,000 in cash. Yes, this means a loss of $2,000 but for a company who is desperate for cash factoring can be a lifesaver.

Getting cash for your structured settlement works in the same way. You will be selling your structured settlement payments to the factoring company in exchange for a reduced amount of cash. Let's say your settlement totals $300,000 and is spread out over 10 years of payments equaling $30,000 each. The factoring company might pay you $250,000 (this is a hypothetical figure only) for your settlement. You get a large lump sum and they make $50,000 over the course of ten years. If done correctly with good intentions, this can be a win-win situation for everyone.

Once you get your lump sum payment, you can do whatever you want with it. Some people use their money to pay medical or legal expenses, college tuition, or living costs. Others choose to invest their lump sum payment. If you're a skilled investor, this can be a way to multiply your money. No matter what you choose to do with your money, it's important to do plenty of research first to make sure selling your structured settlement is the best thing to do.

Copyright 2007 Jim Sterling - All Rights Reserved

Annuities: The Shocking Secrets Revealed.

Structured Settlement News:



Your
If youve been injured, life has a way of getting more and more expensive. With medical bills stacking up, house repairs falling behind, and that old car or yours is getting older every day. With your expenses rising every day, its easy to get caught ...


Architect sues law firm over
EURHad Casey and Boyne informed Taylor that they had..


Business Wire - JGWPT Holdings Completes $204 Million Securitization
December 1, 2011 -- JGWPT Holdings securitizes structured settlement and annuity-backed payment streams. RADNOR, Pa. -- Subsidiaries of JGWPT Holdings,...


Market Wire - Bookkeeper Retires $1M Worth of Preferred Stock
November 14, 2011 -- Bookkeeper International Equities, Corp. (PINKSHEETS: BKPR) provider of management advisory and merchant banking services for micro and small...


Chadd Baugher And Eric Thibault Named EUR2011 Wholesalers Of The YearEUR By CPS . - PR Web (press release)

Chadd Baugher And Eric Thibault Named EUR2011 Wholesalers Of The YearEUR By CPS .
PR Web (press release)
Baugher was awarded for his work in Annuities while Thibault was awarded for his work with Life Insurance. EURChadd Baugher and Eric Thibault are trusted and valued partners of CPS. They set an outstanding example of professionalism and their .

..


Wrong pension choice could mean years more work - Silver Surfer Today

Wrong pension choice could mean years more work
Silver Surfer Today
Now its High pension charges and the wrong choice of annuity could cut a saver's potential pension income by a quarter (24%), meaning they would have to spend years longer at work to cover the loss, pensions experts warned today.

and more »
..


EURThe Financial Crisis: A Debt BubbleEUR Achieves Most Viewed Article on . - PR Web (press release)

EURThe Financial Crisis: A Debt BubbleEUR Achieves Most Viewed Article on .
PR Web (press release)
Annuity Think Tank member Jason Chaifetz attains the honor of Most Viewed article on Producers Web with his popular financial piece, EURThe Financial Crisis: A Debt BubbleEUR. EURThe Financial Crisis: A Debt BubbleEUR achieves most viewed article.

..


Poor pension choices could equate to 5 years of extra contributions - Money Marketing

Money Marketing
Poor pension choices could equate to 5 years of extra contributions
Money Marketing
Failing to get good deals on pension fees and annuities could mean an extra five years at work to get an equivalent pension, according to the National Association of Pensions Funds and the Pensions Policy Institute. A report by the two organisations, .

and more »
..



There are many times when the company uses..


Technorati Tags: , ,