When you sell structured settlement payments the buyer uses a discount rate to determine what the value of the future payments is today. Due to inflation and the time-value-of-money the sum of your structured payments isn’t worth the same as they are if you were to receive the lump sum at once, today.
In order to determine this discount rate, the structured settlement buying company uses a few different variables. The first is the current demand for purchasing these payments. Just like everything else in the market the higher the demand, the higher the price; in the case of selling future payments the present value of these payments will be lower as demand increases. The second variable that goes into account when valuing the present value is the change in interest and inflation. Inflation means that the prices of goods and services in the market go up while the value of the dollar decreases. These factors, along with the value of receiving a large sum of money upfront where it wouldn’t be possible otherwise, determines the dollar amount you can receive for selling your structured payments.
When selling your structured settlement payments, it is recommended that you get a few quotes from different buying companies to compare and see which one can you give the most money today. In order to get a quote, the company will ask you how many payments you wish to sell, the amounts of each payment, and the dates in which they start and finish. Regardless of who you end up choosing, the transaction will have to be approved in court to determine that the sale is in your best interest and that you are getting a fair deal on the transaction. If you are interested in seeing how much cash you can receive today for your structured settlement payments, give us a call now at (844) 355-7653