"Remember, according to the time value of money, a dollar today is worth more than a dollar tomorrow" Quote from the "wizards" at Lump Sum USA whilst trying to "trip up" your financial security for deep discounts.
"The time value of money is the premise that an investor prefers to receive a payment of a fixed amount of money today, rather than an equal amount in the future, all else being equal. Quote From Wikipedia.
The key to separating fact from fiction, to understand and grasp one of the fundamentals of finance, is the phrase "all things being equal". I can assure you that all things are not equal when confronting the flesh ripping incisors that Lump Sum USA wants to tear into the soft underbelly of your psyche and ultimately your financial security.
The present value theory is based on the premise that an amount of cash could be deposited in an interest-bearing bank account (or otherwise invested) from today to a date in the future and earn interest. Consequently, a person or entity lending money generally demands interest payments for use of their capital.
The Lump Sum USA statement fails to recognize that the amount that funds a structured settlement IS effectively earning interest and that is reflected in the structured settlement payments. Moreover there is an income tax exclusion on the structured settlement payments. A dollar in hand today that is spent today on something that depreciates in value, is not worth more than a dollar in hand tomorrow. Furthermore since factoring companies like Lump Sum USA do not give equal dollars for future structured settlement payments (after you take into account the "effective discount rate" which includes their add on costs) their dollars may be worth substantially less.
A review of the Lump Sum USA site shows no address or phone number. A review of the whois records shows that the owner of this site has elected to remain incognito. I have warned readers that sites that show no corporate address and phone number should be avoided like the plague.
NOTE TO REGULATORS: Consider that it ne madatory that any advertising for structured settlekment factoring transactions include the legal name of the company and the address of the company.