Need to Access Your Cash Now? Settlement Funding Can HelpPosted by Factor Funding Co. on July 6, 2012
Settlement funding offers a way for those who qualify for structured settlement payments to get access to a lump sum of their benefits at once. In most cases, recipients who are awarded settlements from a lawsuit or an insurance payoff receive their funds in annual payments that are spread out over several years. While the regularity of the payments can add a bit of long-term stability those who run into financial difficulties may need to get access to their future funds immediately. This is where settlement funding comes in.
What is Settlement Funding?
Settlement funding offers an advance on future settlement payments. The process works by allowing recipients to sell part of their eventual payments for immediate cash. Typically, these funding options are decided on a case-by-case basis and are supervised by a court judge who makes a determination regarding whether the lump sum payment is in the recipient's best interest. The judge will also make sure that the recipient understands the settlement funding process and realizes exactly what they are selling and how much of their funds' value they'll be receiving immediately.
Why Settlement Funding is Helpful
Settlement funding is a good option for many people because it gives individuals a way to get faster access to the funds they may have to wait years to receive. This can be especially helpful if sudden financial troubles arise such as medical problems or job losses. However, since a structured settlement typically provides a reliable source of continuous income, the judge who presides over the case will decide if receiving a lump sum payment now will endanger the individual's primary income.
Choosing a Reputable Settlement Funding Company
Before agreeing to a settlement funding option it's essential that clients find out about the funding company's experience and background. While a company may have been in business for a lengthy time its customer service record may leave much to be desired. Checking on the comments from previous customers can give clients a good idea of which companies to avoid. It's also important that prospective clients check to make sure that the contract terms match the original quote they received. This will help them to avoid being overcharged for basic services.
Settlement funding can be an excellent option for those who receive structured settlement payments annually or monthly. By using this method of receiving a lump-sum payment recipients can use the money they need for their necessary expenses right now instead of having to wait years to receive it.