A lot of times our clients ask about a loan against their settlement. When you initiate a sale or transfer of ownership of your future or current structured settlement payments you are selling the right to get that money when the payments are due but you are by no means taking a loan against these future pay outs.
The loan segment often confuses potential annuitants and clients because they believe that they can pay the money back and regain their settlement. Unfortunately this is not the case and there are many safety precautions in place for your transfer to ensure your safety. There are different Structured Settlement Protection Acts in place that were created to ensure the protection of the consumer who is entering into a factoring transaction.
Loans are never a segment to a factoring transaction however in many cases to help bridge the gap there are funds that are western union’d or wired to help pay bills until a transaction is finalized and in many cases these funds are to be paid back once the transaction is completed.