Before you sell your annuity or structured settlement to a factoring company, it’s important to evaluate its history and ratings and the quality of their offer.
If you’re interested in selling the right to your future annuity or structured settlement payments, a business called a factoring company may be interested in buying it in exchange for a lump sum of cash. Factoring companies and individual investors who buy your structured settlement form the secondary market, which is highly regulated because the industry is so competitive. Sellers should consider several factors, including the quote offered and customer service record of a company, before choosing a company to buy their structured settlement.
A simple search on the Internet will reveal numerous annuity or structured settlement buyers. There are many factors you should consider to choose the right one.
High-quality, trustworthy firms you consider should:
You should never feel rushed, confused or taken advantage of during the selling process. If you do, it may be a red flag that you should not work with a certain factoring company.
Hiring a broker may help you through this process. Similar to a realtor’s role when you sell a home, a broker will help you sell your annuity for the best price, recommend annuity buyers they’ve worked with previously, and explain and complete paperwork on your behalf. If you decide to hire an annuity broker, make sure to ask about their brokerage fee and confirm they are certified and licensed.
A key part of choosing a buyer for your annuity is how much they offer to pay you for the right to receive your future payments. Getting a quote is free and can easily be handled over the phone. When you sell your annuity, it is subject to a discount rate, or the amount you are willing to discount your total annuity worth by in order to get cash now.
Buyers evaluate a group of ever-changing factors to give you a quote, including:
Getting a structured settlement quote is a bit like applying for a car loan. For a loan, you provide a bank or creditor with financial information and get an interest rate tailored to your situation along with a payment plan.
The process for getting a quote is very similar:
When you begin to vet structured settlement purchasers, don’t be afraid to interview them. These questions will help identify their expertise and capability to handle your case:
We always recommend you do your own research when investigating buyers of structured settlements or annuities. But if you’re feeling overwhelmed or are looking for a tried-and-true suggestion that’s already been vetted by industry experts, we recommend our partners. Together, we’ve helped thousands of people sell their periodic payments to get cash fast.
Get a quick, competitive and easy quote in minutes!
If you have any more questions on how the process works, our seasoned financial experts are always ready to take your call on the Annuity.org hotline. We’re happy to help you evaluate your needs and explain nuances of the annuity industry in more detail. If you’re looking to get a quote over the phone, we can provide that too.