The term “factoring transaction” describes the selling of rights to receive future structured settlement payments. The structured settlement payments can be awarded as the result of a personal injury lawsuit/claim, or an arrangement with an insurance company. Any stream of fixed payments over a specified period of time
falls under the category of annuities, with structured settlements being tax-deferred contracts that can provide income for a specified time.
The annuity issuer is usually an insurance company that has issued a contract to provide periodic payments under a structured settlement. While these periodic payments work for some, everyone knows that there are times when you really need cash: the birth of a child, perhaps, or an unforeseen illness. It’s at times like these receiving periodic payments just doesn’t cut it; you need a lump sum cash payment.
Factoring may be the answer if you’re faced with an immediate need for a lump sum cash payment. The periodic nature of structured settlements or annuities do not provide for unexpected expenses, and many find the option of selling their structured settlement for a lump sum cash payment a welcome alternative when faced with unforseen expenses.
RSL Funding helps people gain liquidity from long-term insurance-based payouts.Not a
broker, they act as a principal and close the transaction with their own money. Other settlement buyers may sell your settlement or annuity as part of a pool of settlements. RSL Funding retains responsibility throughout the transaction, ensuring the court’s rulings are honored. Even if the annuity company told you the payments were not assignable, you have options and are not necessarily locked into a payment arrangement that does not meet your current needs.