This content is for educational purposes only and does not constitute financial advice. Consult a qualified financial advisor before making financial decisions.
Who Buys Structured Settlements?
Structured settlements are bought by licensed factoring companies that purchase your future periodic payments and pay you a lump sum today. About a dozen firms make up most of the U.S. market. The largest is The J.G. Wentworth Company, which operates Peachtree Financial Solutions, Stone Street Capital, Settlement Funding LLC, and roughly 15 other affiliated entities under one corporate umbrella per its published Consumer Privacy Notice. Catalina Structured Funding (CSF), DRB Capital, CBC Settlement Funding, RSL Funding, and Fairfield Funding round out the active independent direct funders in 2026.
Two terms get used loosely in this space and they are worth keeping straight. A buyer is the company that quotes your deal, signs the purchase agreement, and funds the transaction with its own capital. A broker (or lead generator) collects your contact details and routes them to multiple buyers that pay for the referral. Lead-generation sites are fine for shopping around, but the entity that actually buys your payments should be the same entity that quoted them. Factoring company is the older industry term for a structured settlement buyer. Secondary market is the broader system through which payment rights change hands.
Every buyer on the list above must go through the same legal process to take over your payments. State law requires it, and federal law backs it up with a 40% excise tax on transfers that skip court approval. The next section covers the mechanics.
How Structured Settlement Buyers Work
Every structured settlement buyer follows the same legal framework: a written purchase agreement, a court petition under your state's Structured Settlement Protection Act (SSPA), a judge's order, and finally the lump-sum funding. The process exists because Congress and 49 state legislatures decided that selling future payments deserves judicial review.
The transaction starts when you reach out to a buyer and share your payment details. The buyer pulls the numbers through its pricing model, runs the present value calculation, and sends you a written quote that includes a discount rate, the lump sum you would receive, and a disclosure statement required by your state's SSPA. If you accept, you sign a purchase agreement. The buyer's legal team then prepares a transfer petition and files it in your county court.
Your state's SSPA dictates the court process from that point. Most states require a 20-day notice period before the hearing, during which the annuity issuer and any interested parties are notified. At the hearing, the judge applies your state's best-interest standard. The judge confirms that you understand what you are giving up, that the price is fair, that no dependents will be harmed, and that the transfer complies with the state and federal framework. Hearings typically take 15 to 30 minutes.
After the judge signs the order, the buyer sends a certified copy to the annuity issuer, which transfers the payment rights. Once that paperwork clears, the buyer funds your lump sum, usually within 5 to 10 business days. Total timeline from your first call to funding: 30 to 60 days in most states. For a state-by-state breakdown, see our guide on how long it takes to sell a structured settlement.
The funds come from the buyer's own capital or from institutional investors who back the buyer's purchases. The buyer earns a return on the spread between what it pays you today and what it collects from the annuity over time. That return, expressed as a percentage, is the discount rate.
Top Structured Settlement Buyers in 2026
The U.S. structured settlement secondary market is concentrated in fewer than 15 active buyers. The list below covers the firms most likely to quote your transaction in 2026, with BBB ratings cross-checked at publication. For depth on each company including discount rate transparency, complaint history, and how to compare their offers, see our full top 10 structured settlement companies comparison.
- Catalina Structured Funding (CSF). A+ BBB, accredited since 2014. Attorney-led, 4,000+ transactions closed since 2011. Full-service: structured settlements, lottery, annuities, probate advances. Founded by an attorney with a decade inside the largest buyers. CSF funds its own deals.
- J.G. Wentworth. A+ BBB. The largest and most heavily advertised buyer in the country. Owns Peachtree Financial Solutions, Peachtree Settlement Funding, Stone Street Capital, Settlement Funding LLC, and over a dozen other entities per the JGW Consumer Privacy Notice. A quote from any of those brands is functionally a JGW quote. See our Peachtree vs. CSF comparison for the direct head-to-head.
- Peachtree Financial Solutions. A+ BBB. A J.G. Wentworth subsidiary since 2011. Markets independently but shares JGW's pricing model and capital.
- Stone Street Capital. Part of The J.G. Wentworth Company since 2018. Founded 1989.
- DRB Capital. A+ BBB. Florida-based independent funder, active in structured settlements and pre-settlement funding.
- RSL Funding. A+ BBB. Texas-based, known for life-contingent and complex deals.
- CBC Settlement Funding. A+ BBB. Founded 2009, focused on structured settlement purchases.
- Fairfield Funding. A+ BBB. Smaller independent direct funder.
How to Choose a Structured Settlement Buyer
The right structured settlement buyer is the one that gets the highest net lump sum into your account on funding day, after court costs, attorney fees, and any other deductions. That last word matters: net, not gross. Some buyers quote a high headline number and chip away with costs. Others put the costs into the discount rate and quote a slightly lower number that nets higher. Always ask for the net.
The eight evaluation criteria you can apply in one sitting:
- BBB rating and complaint history. A+ is the standard. Read the complaints filed in the last 3 years, not the rating alone.
- Years in business. Buyers with 10+ years have seen most edge cases. CSF has been doing this since 2011.
- Fee transparency. The buyer should put every cost on the disclosure statement in writing before you sign. Court costs, attorney fees, IPA fees, document prep. If costs are vague or only verbal, walk away.
- Court-approval track record. Has the buyer had transfers denied? In what states? A buyer with a clean court record knows how to prepare petitions correctly.
- Discount rate range. Discount rates in 2026 typically run 9% to 18% depending on payment type and state. Ask the buyer what range they quote on payments like yours.
- Customer reviews. Google, BBB, and Trustpilot reviews. Look at the substance of the reviews, not the star count.
- In-state licensing. Some states require the buyer to register with a state regulator. If your state does, ask whether the buyer is registered.
- Processing speed. From signed contract to funded check. 30 days is fast, 60 days is normal, 90+ is a yellow flag.
If a buyer cannot answer questions 3, 4, or 7 in one sentence each, they are not the buyer you want handling a major financial decision. Get a quote from at least two buyers on the same payment stream before you commit to anyone. We see customers leave $10,000 to $20,000 on the table by accepting the first offer without comparing. You can run your own numbers first with our structured settlement calculator, then call us at (800) 317-3769 for a written quote.
Red Flags When Comparing Structured Settlement Buyers
Five patterns separate reputable structured settlement buyers from operators you should avoid.
High-pressure sales tactics. Reputable buyers want you to compare offers. Operators who pressure you to sign on the first call are pricing the deal poorly and counting on you not finding out. We have seen customers come to us in tears after being talked into signing within a few hours of the first phone call. Take 48 hours, get a second quote, and walk if the original buyer raises any fuss.
Vague pricing. If a buyer quotes you a lump sum without disclosing the discount rate and the underlying payment math, that is a refusal to put the price in writing. Every state SSPA requires that disclosure before you sign. Ask for it during the quote stage, not when you are about to commit.
No explanation of the court process. Court approval is required. A buyer that does not explain the SSPA process, the hearing, the IPA requirement (if your state mandates one), and what happens if the judge raises a question is either inexperienced or hiding something.
No licensed attorney involvement. The petition is a legal filing. The hearing is a legal proceeding. Buyers without attorneys on staff outsource the legal work, which slows the process and adds cost that ultimately comes out of your lump sum.
Offers that look too good to be true. A discount rate dramatically below the market range is either a teaser that gets walked back later, or it includes hidden costs the buyer plans to disclose only after you sign. Compare offers from at least two buyers on the same payment stream before you accept the outlier.
Why CSF Is on This List
We have been buying structured settlements since 2011. More than 4,000 transactions closed across nearly every state, more than $200 million paid to sellers, A+ BBB accreditation since 2014. The founder spent close to a decade as the attorney behind the biggest names in the industry before starting CSF to do the job differently.
What that experience means in practice: we know which states approve transfers fastest, which annuity issuers process paperwork in five business days versus three weeks, and which county courts handle SSPA petitions efficiently. We handle the court filings ourselves through four licensed attorneys on staff, which means fewer rejected petitions and fewer surprises during your transaction. The amount we quote is the amount you receive at closing, with court costs and document prep absorbed into the discount rate rather than deducted from your lump sum.
We encourage comparison shopping because we are confident in our pricing. Get a written quote from us and from at least one other buyer on the same payment stream. Compare net dollars. Read our customer reviews and our about page. Then decide. Call us at (800) 317-3769 to start.
Related Resources
If you are at a specific stage of the process, these pages will help you faster than the general overview above:
- How to get a structured settlement quote. What information you need, how quotes are calculated, how to compare offers.
- What is a structured settlement buyout? A plain-English guide to the full-vs-partial sale decision and the cost mechanics.
- Top 10 structured settlement companies. A deeper comparison covering BBB profiles, complaint patterns, and the buyer-vs-broker distinction.
Frequently Asked Questions
What is the difference between a structured settlement buyer and a broker?
A buyer purchases your payments with its own capital, signs the purchase agreement, and funds the transaction. A broker collects your information and refers it to multiple buyers in exchange for a referral fee. The company you actually sell to should be the same company that quoted you. Ask any buyer you contact whether they fund the deal themselves or pass your information to others.
Do I need a lawyer to sell my structured settlement?
No. Reputable structured settlement buyers prepare and file all legal documents as part of the transaction at no charge to you. Some states require that you be advised of your right to seek independent professional advice (IPA) before the sale is finalized, and a small number of states require that you actually receive IPA. We always recommend talking to an independent advisor anyway.
Can I sell my structured settlement to any buyer?
Almost. Every state has a Structured Settlement Protection Act that allows you to sell future payments to a court-approved buyer. A handful of state SSPAs require the buyer to register with a state regulator (New York and Maryland are examples). If your state requires registration, only registered buyers can purchase your payments.
How are structured settlement buyers regulated?
Three layers. State SSPAs require court approval for every transfer, with a judge applying a best-interest standard. Federal law (IRC § 5891) imposes a 40% excise tax on transfers that skip court approval, which keeps buyers in compliance. Some states impose additional licensing or disclosure requirements through their insurance or financial-services regulators.
What documents do structured settlement buyers need?
Typically: a copy of your structured settlement agreement, the annuity policy or benefit letter from the issuing insurance company, a government-issued ID, and proof of your current address. Some states require additional documents like divorce decrees, prior court orders, or disclosures about dependents. Your buyer will tell you exactly what they need based on your state.