by John Darer® CLU ChFC CSSC RSP CLTC
Due to the high cost of money it is generally NOT a good idea to sell your structured settlement payment rights until you have explored and exhausted all other options. If you must go down this route then you should try to accomplish your goal with as little disruption to your long term structured settlement as possible.
There is a huge range in discount rates with a concomitant effect on how much you can raise for sold payments. Remember if you are really stuck and must do this you want to sell as little of your structured settlement payment rights as possible to solve your unexpected financial problem or accomplish your goal.
So how much does that cash now offer really cost you? Let's get started...
Use this calculator to figure out the discount rate that the factoring company is charging you. You can then use the number to compare to other sources of capital such as bank borrowing, credit cards, home equity loan, SBA loan etc. Note that this calculator works with period certain and guaranteed lump sum payments.
**the structured settlement factoring discount rate calculator is provided as a convenience for our readers which we hope they will find helpful in comparison shopping. It is used with permission from Settlement Quotes, LLC. Settlement Quotes, LLC is independently owned and operated and neither 4structures.com, LLC nor this author have any ownership interest in the company.