A common way to settle a personal injury suit, insurance claim, and other payments is to establish a structured settlement. These settlements allow the paying party to pay what they owe in installments over a predetermined period of time. The receiving party can count on this income for that period of time and use it in any way they see fit. Sometimes the winner of a structured settlement needs the money immediately. In this situation they can sell their structured settlement payments.
Receiving money over a period of time is a great way to augment your income, but with a lump sum payment the money can be used where it is needed. You can pay down debt, pay for education, purchase a new home or car, or even invest in a business. To get a lump sum payment instead of a structured settlement, you can sell your structured settlement payments to another party.
There are a lot of companies that will buy your structured settlement payments and give you a lump sum. When deciding which company to work with you should make sure that you know what they are planning on doing with your structured settlement payments. A company that will buy your structured settlement payments then sell them to a bank is unlikely to give you a fair deal because they want to profit from their sale.
To avoid a lowball offer for your payments you can sell your structured settlement payments directly to a bank. Selling directly to a bank helps you find a good offer for your structured settlement and eliminates companies that are trying to profit from your sale. Selling to a bank can also help reassure you that you are working with a reputable company. A good example is AnFed Bank. AnFed Bank is a division of BofI Federal Bank (Nasdaq: BOFI) so they have reputation to uphold and are less likely to give you a bad deal.
Structured settlements are becoming more and more common as ways to receive payment. When the recipient of a structured settlement needs the money immediately, they can sell the structured settlement payments to a bank to get a lump sum payment that they can use in short term.
