Understanding Factoring And Structured Settlements
Factoring is an important part of the structured settlement selling process. In effect, factoring is what determines the amount of money you receive from the sale of your payments. Understanding how this process works is important to understanding what you can expect to gain through the sale of your structured settlement or annuity payments.
What Is Factoring?
Factoring as it applies in this case is another way to describe the financial process involved in valuing and buying structured settlement payments.
Factoring is essentially a sale and transfer compensation arrangement. The key factor in factoring is on the value of the payments. This is determined by evaluating a number of variables, including
- The total value of the annuity payments
- The creditworthiness of the payer (the annuity fund)
- The remaining length of contract (how many payments remain)
- The type of sale—full or partial
These factors are evaluated to arrive at a value and purchase offer for your structured settlement. With everything taken into consideration, Prosperity Partners will be able to assign a value to your settlement and offer to buy all or part of your remaining payments at a discounted rate (you decide whether full or partial sale is right for you). Buying at a discounted rate means that you will receive less than what you would if you were to collect all payments made to you. This is the industry norm, and it is how settlement buyers support their business.
Who Are the Parties Involved In Factoring?
There are three parties involved in factoring settlements. They are:
- You, the recipient of payments
- The payer, the insurance company or annuity or party who owes you money and pays your monthly settlement payment
- The payment buyer, here Prosperity Partners
The most active party in the process is the buyer, Prosperity Partners. It is up to us to collect information from you, assess the contract, and make you an offer; in addition, Prosperity Partners will answer any and all questions and work to educate you as to your rights, responsibilities, and choices. As the potential seller your only obligation is to provide the necessary information and documentation, and make the decision that is right for you. The payer plays a very minimal role in the process at this point, being primarily a tool to be evaluated, but having no influence over the offer being made.
How Factoring Works For You
Factoring gives you choices that you have not had the luxury of having up until this point. By entering into a factoring process, you empower yourself by giving Prosperity Partners the tools for evaluation that we need to buy your structured settlement payment. You give us the ability to present you with a few purchases options so that you can finally gain access and control of the money that is yours in amounts large enough to be flexible and beneficial.
Ultimately, the power of decision is still yours. Factoring allows us to evaluate your situation, present different options, and make an offer of purchase to you, but it does not obligate you in and of itself. That decision is yours—the decision to access your money now or later, in part or in full, is yours, and you are in control of your financial future.
Contact Prosperity Partners today, and we'll put you in control!
Ask Prosperity Partners friendly staff to
“get me my money today.”
info@prosperitypartners.com
1-800-509-1648.
