Factoring And Structured Settlements

Factoring is part of the structured settlement selling process. In effect, factoring is calculating the amount of money you could receive from the sale of your future payments.

What Is Factoring?

Structured Settlement Factoring is essentially a sale and transfer compensation calculation used to determine the value of the future payments. This is determined by evaluating a number of variables, including

• The dollar value of remaining annuity payments
• The creditworthiness of the annuity funder
• The remaining length of contract (how many payments remain)
• Full or partial payments, monthlies, lumps, annual payments

Prosperity Partners will be able to assign a present value for your settlement payments at a discounted rate. 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.

It looks like a mortgage in reverse.

You buy a $200,000 home and pay $300,000 over 30 years. In this case, you may be due $300,000 in annuity payments over 30 years, so the value of those future payments today might be $200,000. (Example used for demonstrating net present value of future payments, not an actual offer.)

There are three parties involved in factoring settlements:

• You as the recipient of settlement payments
• The payer, usually the insurance company
• The payment buyer, Prosperity Partners

Prosperity Partners will collect information, assess the details, and make you an offer as well as answer any and all questions regarding your rights, responsibilities, and choices.

Factoring Gives you Choices

Factoring allows you to evaluate your options and gives you back control of your financial future.

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