The buying and selling of structured settlements is a for-profit business. Companies that buy a structured settlement provide a lump sum that is less than the amount of the future value of payments. The prospective buyer – in this case, the funding company – will disclose the trade-off to you in plain language. Funding companies have high operating costs to engage in these transactions including but not limited to: administrative fees, legal fees, marketing costs, financing costs, employee costs and other operating overhead.
Structured settlement buyers typically borrow money from financial institutions in order to finance the purchase of such payments. The borrowing costs can fluctuate depending on a variety of factors. Structured settlement buyers also have risk associated with the credit worthiness of the insurance company required to make payments. These risks are often difficult to anticipate as highly rated insurance companies can quickly lose their financial footing, as history has shown.
CBC Settlement Funding can provide you with a lump sum cash advance for all or part of your structured settlement. Contact us today if you’d like to sell a structured settlement or need more information on customized cash options to fit your financial needs.