The Confusing Phrase of “Structured Settlement Cash Advance”
We frequently get contacted by folks looking to get a cash advance on a structured settlement. Cash advances seem to be fairly common these days in other realms. For example, many websites and for that matter store fronts are dedicated to things like: Title loan cash advances, payday loan cash advances and other forms of getting money immediately for some asset or a right to payment in the future. While there are companies that offer structured settlement cash advances, the nature of these advances are dramatically different than ones you find, for example, if you look to get an advance on your car title.
On a very simple level, a car title cash advances works to allow you to receive some amount of money today in exchange for putting up your automobile’s title so that the entity giving you the cash today has an asset it can collect against should you fail to pay back the money within the agreed period of time. That is to say, if you take out a $500 car title cash advance it is more akin to a “loan” in that the company will look to take possession of your car in the event you fail to pay the money back… with interest. “Structured settlement cash advances” however do not work in this fashion.
In order to truly get money from your structured settlement, you as the annuitant, generally have two choices (although variations of these two choices exist). The first choice, and the most prudent if you are not in need, is simply to wait for the structured settlement payments to come in on the predetermined schedule. As you know, structured settlements are set up to provide some degree of economic protection. As the annuity issuers and owners are generally well established companies, you can rest assured that in most cases, you will receive your payments as scheduled.
If you find yourself in a bad spot however, and you have explored other options for raising money, one thing you may consider is selling your structured settlement for cash. This option however has clear downside including what rate the purchaser uses to discount your payments for calculating a lump sum. If you determine this is your best option, you may also want to discuss the type of cash advance a company will provide you as the transaction moves through the system and you wait for a court to either approve or disapprove of the sale of your structured settlement. While the availability of a cash advance on structured settlement sale is definitely important to many customers, it is only one of a host of other factors you may want to consider.
Call Us at 800-317-3769 to discuss various options that we can provide.