So, you have factoring structured settlement sale questions. Understandable. Let’s start from the beginning and say that selling your structured settlement begins with your financial need. When something changes in your financial life and you feel that a lump sum of cash will serve you better than your smaller payments you need to consider if you have other options for getting your finances on track. Remember, a structured settlement, by nature, is meant to provide long term financial assistance, even security. You should not make the decision to engage in a factoring structured settlement sale lightly. But if you have come to a point where you feel that you truly need to consider a factoring structured settlement sale, let’s look at that process briefly.

1. The first thing you will do is contact some purchasing companies, such as Strategic Capital. The company that you talk to is going to ask is how much money you need or if there are certain payments that you want to sell. A caring, professional company will also talk to you about your financial goals and needs, both now and in the future, and will help you finalize the decision of whether to sell. As part of this process the buyer will want to see your original settlement paperwork, so try to locate this before you even make that first contact or very early in the process.
2. Once you decide to sell, the purchasing company will send you paperwork such as a sale agreement, disclosure agreement, and various legal documents. You need to sign these and return them.
3. In almost all cases the purchaser must then schedule a legal hearing before a state judge to request that the court approve the purchase. It is important for you to realize that a lot of companies will tell you that the fact that the sale will ultimately be approved by a judge proves that you have gotten a good deal. Unfortunately, that isn’t what it means at all. It only means that your transaction has been approved and it tells the insurance company to send your payments to the buyer. Do not leave it up to the court to ensure that you are getting a good deal or that you are making the best decision.
4. In most states you will be required to attend the court hearing for your factoring structured settlement sale so that the judge can ask you questions about why you want to sell your payments.
5. There are some potential issues that can stop the process right here, leading the judge to deny the sale. The judge might feel that this sale is not in your best interests and deny it; this often happens when parents try to sell the payments that their minor children are receiving. Some states, such as North Carolina, have a rate cap; thus a sale will be denied if the cost to the seller is too high. This list is not exhaustive; there are other things that could cause the process to fall through. But most transactions proceed smoothly.
6. After the judge approves the purchase the insurance company will be informed. Then, the buyer will make your lump sum payment of cash to you.

When you work with Strategic Capital you can be assured that we will do our best to get your factoring structured settlement sale approved and get cash in your pocket fast.