Tips For Choosing a Structured Settlement Company

Structured Settlement

If you are looking for structured settlement companies, this is the guide for you. There are many options and variables to keep track of so you can walk away with the best deal. You don’t have to agree to any offer right off the bat. Follow these steps listed in our article before accepting anything.

What is a Structured Settlement Company?

Simply put, a structured settlement company is an organization that buys structured settlements. These companies usually pay the sellers in lump sums. So, instead of receiving your payments over the span of years, you can get your money faster. Structured settlement companies are also known as factoring companies or settlement purchaser companies.

What do Structured Settlement Companies do?

Companies buy settlements so they can turn around and resell them for a profit. For example, if you have a $500,000 annuity that pays out over 20 years, a company may buy it from you for $250,000 and sell it to another party for $300,000. The transaction makes sense for both parties involved because the seller gets cash fast, and the buyer earns interest on the structured settlement payments until their investment matures.

Choosing a company?

Choosing an established company with a proven track record of success is important when selling your structured settlement payments. Look for a firm that offers excellent customer service and has been in business for quite some time. Top rated structured settlement companies can be found on:

If a company has been around longer than other firms in its field, it probably knows what’s best for its customers and will give them a better deal on their settlement rights than newer companies may offer. Things you can look for:

What’s the company’s process?

When you’re considering which structured settlement buyer to work with, it’s important to find out how the process works. You’ll want to know whether you’ll be able to talk directly with the decision-makers. Many companies have a long, drawn-out process that includes multiple phone calls and emails. Make sure you’re aware of the entire process before agreeing to work with a company.

The company’s history

As with any financial decision, it’s important to feel comfortable with the people you’re working with. Be sure to do your research into the reputation and history of the companies you are considering. How long have they been in business? Does the Better Business Bureau (BBB) give them an A+ rating? Do they hold an A rating from Standard & Poor’s (S&P)? These ratings tell you that the company has a good track record and is unlikely to run into financial difficulties in the future.

Competitive offers

When it comes to selling your payments, there’s some room for negotiation. This means that one company may offer more than another for the same payments. Before making a decision, get free quotes from a few different companies and compare them side by side. It’s easy to do using an online quoting tool like what we have on our home page.

Time in business

Some companies have been in business for many years, while others are brand new to the industry and still trying to find their footing. The longer a company has been in business, the more experience they have handling these transactions and dealing with future contingencies (such as what happens if the buyer dies).

What’s the company’s financial strength?

Before you sign anything, you’ll want to make sure the company is financially strong enough to pay your lump sum in full. For example, if you need $100,000 and the company only has $50,000 in cash available, they might be able to line up financing, but that can add months to your payout.

How long will it take for me to receive my funds?

This is another important question. Some companies have large cash reserves and can offer next-day payments. Others have small reserves and need time to assemble financing. Some companies that rely on financing will take longer than others, depending on the quality of their lender relationships. Most companies that rely on financing will tell you upfront if they need more time, so ask.

With the rise in the number of companies looking to provide help and support in this area, it is becoming harder and harder to tell what is a good company. We have created this post to provide information on Structured Settlement companies.