If you have a structured settlement, learn your options to get a cash advance from your lawsuit settlement.
What is a structured settlement?
When it comes to choosing methods to receive a settlement, there are two possible options to receive it. You can either obtain the settlement money in a lump sum or request a periodic payment through a structured settlement annuity arrangement.
If you selected the option of a structured settlement payout, you will receive the amount over a period of years. In a structured settlement, both parties employ a qualified assignee to negotiate the terms of the structured settlement agreement.
Then the qualified assignee purchases an annuity from an insurance company, and the defendant pays for this.
Once the arrangement is finalized, the insurance company will make payment to the plaintiff under the terms and conditions agreed between the parties.
Once you agree to a structured settlement, you are not entitled to renegotiate the agreement and demand lump-sum payment.
If you are receiving payment from a structured settlement annuity, you will have financial security. However, life is unpredictable, and there arise moments in which you may need a lump sum amount, and the amount you are receiving through structured settlement may not be enough for you. What do you do then?
Let’s shine a spotlight light on what structured settlement funding is in the simplest possible way.
What is a structured settlement loan?
Structured settlement funding or a loan is actually a cash advance on a lawsuit settlement you have already won and are currently receiving payments from the insurance.
Additionally, structured settlement funding is not a traditional loan. There are no repayment amounts to the structured settlement financing company because the money is yours.
Most structured settlement loan companies understand that the small periodic payments you receive from a structured settlement are not enough to cover daily expenses.
Similarly, it can be frustrating to have money, but you are forced to wait to receive your own money.
For that reason, a structured settlement loan is considered the most viable option for plaintiffs with structured settlements. Instead of subsisting on installments that trickle in, funding companies pay you upfront.
You can receive the lump sum amount from them to renovate your home, buy a new car or pay for any other financial liabilities which are outstanding and due without worrying about the due date.
How does structured settlement funding work?
Structured settlement funding is a straightforward process. You start by contacting a funding company that offers structured settlement loans.
Generally, a funder’s staff will get back to you within a day to finish the qualification process. Once the company’s underwriters approve your application, you will receive the lump sum amount within 2-5 business days depending on who you fund with.
Since a structured settlement loan is a non-recourse loan as the money is already yours, you are not required to provide collateral, co-signers, or other conventional loan requirements.
Similarly, you don’t have to prove your credits to obtain funding. Only provide details of the structured settlement award you have received from the court of law and the lump sum amount you desire to obtain from us.
Can a bank lend me structured settlement money instead?
You cannot obtain a loan from a traditional financial institution like a bank only on the basis of your structure settlement award because it is not considered an income source.
It is tough to obtain loans from banks, as you will have to prove good credits, and it also takes a reasonable amount of time to approve a loan from banks.
If you want to avoid the complexities of traditional lenders, you can approach a trusting structured settlement financing company. They will purchase part or all of your total settlement and pay you one large lump sum amount.
Some companies don’t charge any interest but a one-time fee. However, do your research before you sign the small print, so you don’t end up overpaying or signing with a predatory firm.
At this time, Baker Street Funding is not providing structured settlement funding. This article is for informational purposes only.
