Strategic Capital: Responsible Post-Settlement Planning
What is Strategic Capital?
Strategic Capital Corporation provides financial services to structured settlement annuitants, lottery winners and attorneys who need liquidity and who need to access their future periodic payments.
Strategic Capital recognizes that life is unpredictable and that unanticipated events can radically change an annuitant’s financial needs long after the lawsuit was settled.
Payees who receive structured settlement payments are called annuitants. They are able to access a sum of cash by selling part or all of their structured settlement. The process of selling settlements is known as settlement purchasing companies or factoring companies pay a lump sum of cash for all or a portion of an annuitant’s future payment stream.
The best factoring companies are committed to responsible post-settlement planning. They do not solicit annuitants to sell their payments. They recognize the guaranteed security that a structured settlement provides, and they work with structured settlement brokers and attorneys to develop financial solutions that provide cash to annuitants while considering their overall financial health. From encouraging the annuitant to consider both current and future needs, through serving as a key resource to attorneys and settlement brokers, to purchasing structured settlements, Strategic Capital offers the best post settlement solutions to those whose financial needs have changed.
David Meyerowitz, CEO of Strategic Capital, described one particular case that Strategic Capital handled that exemplifies a circumstance of true and immediate need for funds – the situation of a young couple who met unexpected challenges with their newborn child. Here is their story.
Shortly after birth, the couple’s newborn fell ill and was hospitalized. In order to care for the infant and be by its side, the mother had to resign from her full-time job. Suddenly without income, the couple needed to replace the mother’s lost wages and pay for uncovered medical expenses. They contacted a number of factoring companies, including Strategic Capital. Strategic Capital reviewed the couple’s case, and favorably structured a transaction by purchasing some of their payments in a way that minimized the impact on the original structured settlement. Furthermore, Strategic Capital’s bid was 20% better than the others the couple had received.
As the transaction was processed through the court system, the couple faced another challenge. In order to bring their baby home after the child’s condition stabilized, they had to purchase drugs not covered by their health insurance plan. So, even prior to final court approval, Strategic Capital was able to overcome this obstacle by advancing $1,800 interest-free to the couple so that they could buy the medication necessary to bring their baby home. Finally, when court approval was received, Strategic Capital funded the remainder of the purchase price.
Selling annuity payments in exchange for lump sums is a complicated process of strategic thinking, obtaining excellent legal and financial advice, and choosing the right team members to make the process as smooth as possible. A good factoring company provides responsible and knowledgeable help to clients as they navigate what can be a difficult time in their life.