by Structured Settlement Watchdog®
Someone finally got the bright idea to create an online exchange where sellers of structured settlement payment rights could be matched to buyers who would compete in an online auction, a sort of factoring version of Ebay. Such an exchange is Quote Me A Price(dot)com and offers consumers (with rudimentary computer skills) an alternative. Let's see where this leads.
Quote Me A Price(dot)com claims to be is an online referral network of Settlement Funding Firms, Factoring Institutions, and Accredited Investors. According to its President Sean Houlihan, its unique marketplace concept was designed for the sole purpose to assist clients in obtaining the most cash back possible from these Companies by offering more choices, and multiple competitive cash quotes. The various partnerships they've established allow consumers to get the maximum cash back from the sale of Annuities, payments rights to Structured Settlements, Life Insurance Settlements and Notes if they must sell. Its settlement funding partners will buy some or all of the payments for a discounted lump sum price, and cash offers obviously vary. Conceptually, through the online exchange, funding firms compete in a efficient way for all participants. Judging by the names on the Quote Me A Price.com relationship list, it appears that the exchange/auction concept is gaining traction.
Stone Street Capital
Great Bay Capital
Mr. Houlihan tells me that the competitive bidding deals that come through his exchange, strip a lot of the profit out of the deals so that, in theory, more is there for the consumer who has established, though independent financial advice, that factoring is the last remaining route to resolving a financial problem. Clearly a person must have access to a computer, know how to use it, have access to an email account and have some degree of patience in order to benefit from this.
This author is also aware of another exchange that is in the beta stage which will actually give an instant online quote for different types of cash flows.
It would be interesting to hear from both vendors and payment rights sellers who have used such an exchange with their experiences.