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Top 5 Structured Settlement Funding Companies

Once you take the decision to sell your structured settlement payments for a single lump sum cash payment, the next step is to shop for the best structured settlement funding companies. There are a number of such companies out there, so it’s easy to get confused over which one to pick. That’s why we have prepared a guide to the companies that offer structured settlement funding and what to expect from them.

The following factors should be taken into consideration when picking the best structured settlement funding companies to do business with. Let’s get started.

Company Reputation

The company’s reputation does count for a lot. As a consumer, you should do your research on the companies that offer to purchase your structured payments using resources such as the Better Business Bureau (  While there are many reputable companies in the industry, there are some that cannot be trusted.

Read More: Top 10 Best lawsuit Settlement Funding Companies

It’s not that hard to research a company’s reputation, you can look for consumer complaints or online user reviews. In particular, pay attention to the number denials faced by the company when offering to purchase structured settlements. The best companies have the lowest denial rate. Next, find out about the amount of structured payments purchased by the company – this should be as high as possible and is a good indicator of their financial stability.

Discount Rates

Look for the discount rates offered by the structured settlement funding companies. This should be the same or similar to the interest rates paid by consumers on a standard loan. The companies that offer to purchase the structured settlement payments want to do so at a high discount, as they are taking a huge risk here – as it is possible that they may not receive all the payments. So, shop for companies that are willing to assume the most risk and offer the lowest discount rates on the purchase of the settlement. These discount rates vary widely from one company to another; shop around till you find one that you are comfortable with.

Read More: Top 5 Structured Settlement Loan Companies

Purchase price

When shopping for the best structured settlement quotes, you will be sent different estimates of the purchase price by various companies. This depends on what they believe to be the right time-value of money. In particular, the companies will consider the duration of the settlement.

This is important because a dollar paid right now is worth a lot more than a dollar paid in the future. The timing of the payments is another thing that has to be taken into consideration. So when shopping for the right structured settlement funding company, look for one that makes the payments sooner rather than later.

Customer Support

The quality of the customer support offered by the structured settlement funding companies is very important. That is because structured settlement funding is a very complicated process, which requires extensive financial and legal expertise and knowledge of the country’s tax system. So, a customer service that is both efficient and knowledgeable about these issues can be of a lot of help to people looking to sell their settlement payments. The customer support be accessible 24/7 and work even on holidays. They should be US based – this is important. You should be able to reach out to them by phone, live chat or email. They should have a dedicated representative to help you out with your issues.

Read More: Top 10 Pre Settlement Funding Companies

Surrender Charges

The surrender charges and fees imposed by the structured settlement company when selling the settlement should be taken into consideration. The companies impose these charges to recoup the money spent by them on the creation of the plan. Surrender charges include the legal fees charged by the companies, the commission to be paid to the broker who organizes the settlement payment and other fees related to the sale of a structured settlement such as recording, filing and other administrative fees. Surrender charges are usually deducted from the eventual payment amount, so the consumer does not have to pay them. But generally, it is important to choose structured settlement funding companies that impose the lowest surrender charges.

Read More: Top 4 Structured Settlement life Annuity Companies


Top 5 Structured Settlement Funding Companies:


DRB Capital Can Help You get a Quick Lump Sum Payment For Your Structured Settlement Payments or Annuity Payments.




Need cash for your structured settlement, annuity payments, or funding for your lawsuit? Find out how to access your money now and turn your goals into reality.




Legal Bay is the industry leader in pre-settlement funding cases. Get a risk free cash advance on your pending lawsuit. Stop waiting for your money and call to qualify for a settlement loan with no risk to you.




Need immediate cash from your structured settlement or annuity? Call SenecaOne for options like $5,000 Right Away. Your consultation is 100% free.




We have clear, upfront pricing for annuity conversions and never charge fees. Sell your annuity with Us and Get the Lump Sum You Deserve.



Structured Settlement Funding – How It Can Help?

What is Structured Settlement Funding?

To understand structured settlement funding, you will need to understand what are structured settlements and how they are funded. Structured settlements are monthly payments that are funded through an annuity and paid over the term of the settlement. The recipients of a structured settlement may, at some point, want the payments to be paid to them at once, in a lump sum, instead of being given in installments over a period of time.

They may be faced with a sudden medical emergency, mortgage payments or huge credit card debts that need to be repaid. That’s why structured settlement funding can be so very important. This allows them to convert all the settlement funds into a lump sum cash amount. Let’s find out more about how structured settlement funding works.

Why do you need Structured Settlement Funding?

If you’ve been awarded a major structured settlement by a court, you’ll be sent periodic payments through an insurance company. These payments are generally a result of a victory in a personal injury lawsuit, or a workers’ compensation settlement. Now, rather than be given a single one-time payment, you will be sent monthly payments over several years.

These payments are just enough to meet your financial obligations for the near term. But since they are paid over several installments, the amount you get each month from such a settlement may actually be too small and not enough to meet your financial obligations. That’s why it makes sense to sell a part of your structured settlement funding to a structured settlement company, so that you can get the money you need to meet your obligations right now, instead of having to wait for it.

One of the misconceptions people have about the structured settlement funding process is that it is basically a loan taken against their settlement payments. This is far from being true. Essentially, you are actually selling your future settlement payments to the highest bidder. It’s not a loan because you’re not required to pay anything back. Also, when assessing your eligibility for a structured settlement funding, your credit score or credit rating is not taken into consideration. This is an important point that most people miss.

Types of Structured Settlements

The different types of structured settlements are…

#1. Life with Period Certain Annuity – where the plaintiff is given equal payments throughout their lifetime with a guaranteed period.

#2.  Period Certain Annuity – where the plaintiff is given equal payments for a guaranteed period.

#3. Guaranteed Lump Sum Payment – where the plaintiff is given a payment on a specific date or dates.

#4. Joint and Survivor Annuity – where the plaintiff or their spouse are given equal payments for the rest of their lives, which are then continued at 100% to the survivor.

#5. Temporary Life Annuity – where the plaintiff is given equal payments only up to a specific number of years and not for the rest of their life.

How Does Structured Settlement Funding Work?

Structured settlement funding is one of the best ways to achieve financial independence or to provide for major purchases. The idea is to sell your structured settlement payments in part, or as a whole, to a structured settlement company. There are several benefits to be gained from this. First, you will receive the cash much sooner than you would otherwise. You will have the much needed flexibility while making a decision as to how many payments you want to sell right now. You will have complete control over the settlement. You may choose to sell only a part of each payment and continue receiving the rest on a monthly basis. You can then use this money to invest in a business or to sponsor the education of your children. You can pay for the down payment on a car or a house. You can use the money to pay back an old loan and to improve your credit score. Essentially, with structured settlement funding, you can achieve your personal goals faster.

How Does Selling Structured Settlement Payments Work?

Why Selling Structured Settlement Payments Makes Sense?

The economy may have improved significantly, but not so long ago, when things were a little more uncertain, there were many who looked at unusual ways to make money. One of the interesting means used by people to get much needed cash during the Great Recession was selling structured settlement payments, scheduled lottery payoffs and other types of ongoing payments for instant cash.

This tactic became very popular then and is widely used even today. Indeed, cashing in on a structured settlement is a much better option than receiving the payments over an extended period of time. Getting a lump sum amount of $100,000 can be so much more beneficial to you than receiving $400 per month. There isn’t much you can do with a monthly payment of $400, but a lot that you can so with a single lump sum payment of $100,000.

How does Selling Structured Settlement Payments Work?

If you see the TV advertisements made by structured settlement funding companies, you would be under the impression that getting a quick cash payout on a settlement is really very easy and just a phone call away. This is not so at all. In fact, the entire process is controlled by the court.

The judge decides whether you should be allowed to sell your structured settlement to a company or not. Indeed, the phone call made to the structured settlement funding company is just the start of what is quite a lengthy process. Every transaction made through this process must have the approval of a judge before it can go ahead. That’s why when selecting structured settlement funding companies, choose those that have lower denial rates – this is very important.

Basically, the structured settlement holder must make a convincing case that they have a real and legitimate need for the money. They should justify asking for the requested payout amount in court. You are not allowed to turn a structured settlement into cash just because you want to go on a trip to Europe or to buy a new SUV. There has to be a legitimate reason for asking a lump sum payment to be made for the structured settlement. This is important as it keeps the unscrupulous companies that prey on the naïve and the innocent at bay. More than anything, the court wishes to ensure that the interests of the consumer are protected.

So when a structured settlement holder gets in touch with a company, an agent and a team will look into their case. They review the settlement, the circumstances in which the money is being asked for and the reasons for which the applicant requires a cash payment to be made.

The settlement funding company then decides whether to move forward with the case or not. They offer the applicant a quotation consisting of the upfront payment, the discount rate or the rate at which they make an offer to buy the settlement payments and the surrender charges – which are basically the administrative fees charged by them.

The discount rate charged by them is between 5 and 30 percent – the lower the discount rate, the higher the amount received by the applicant. So for the best deals, it is important to shop for settlement funding companies that offer the lowest discount rates on the settlement payment.

Once the applicant decides to accept the offer, the settlement funding company then files a petition in court for the transfer of the structured settlement. It is then left to the court to decide on the validity of the request for the sale of the structured settlement payments. Essentially, the judge is the final arbitrator of whether the deal for the structured settlement transfer gets approved or not.

So this is how the process of selling structured settlement payments work. It is quite a complicated process and it is important that you should be aware of all the legal, financial and tax implications of such a deal.

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