Cash Advance for Structured Settlements
Want a cash advance to make things a little easier when selling your structured settlement payment rights? Want to understand how cash advances work? You're in the right place.
What is a cash advance?
When someone seeks to sell their structured settlement or annuity, the purchasing company can authorize that some of the money is released to the them up front. This amount will be later be deducted from the lump sum after the purchase is finalized.
Why would someone consider asking for an advance?
Since it can take a few months to finalize the purchase of a structured settlement or annuity, companies offer advances so that the customer can have some of the money immediately.
Do companies charge interest or financing fees for advances?
Generally, no. Most companies won't charge any additional fees or interest for an advance.
What's the maximum amount someone can expect to receive as an advance?
The amount of an advance depends on various factors such as the size and duration of the customer's payment schedule.
What are some advantages of securing an advance against the sale of a structured settlement or annuity? Why not apply for a regular loan or traditional cash advance instead?
As mentioned above, an advance against an annuity or structured settlement usually does not incur additional fees or financing charges. After the purchase of the annuity or structured settlement is finalized, the company will recoup the amount of the advance from the lump sum. With a traditional loan or cash advance, companies will usually charge customers extremely high interest rates and fees. Also, those companies will withdraw what they are owed directly from the borrower's bank account on a set date, regardless of borrower's financial situation. Additionally, aggressive collection tactics are common for these lenders if the borrower defaults on the loan.