We’re available to answer – or at least try to answer – any question you may have about selling structured settlement, prize, or annuity payments. You might be surprised how frank, open, and upfront we are about this. For right now, we want to highlight these 5 questions that don’t get attention they deserve.
Our goal is to make one offer to every potential customer, far & away the best offer money can buy without hesitation, and for every customer to be thrilled to work with us no matter what happens. We want to build the best payment factoring company of its kind, built on customer service and on doing more deals with more people who really need this service, at lower average revenue per deal, meaning more money on average for each and every client.
Settlement Giant’s goal is to make it easy: easy for you to understand and appreciate any offer we extend to you, easy for you to understand the how’s and why’s of the process, and easy for you to actually enjoy working with us to help you improve your overall financial well-being and accomplish what you’ve set out to do. That means considering your past, your present, and your future to develop possible solutions for you, the kind we’d want made to us if we were in your shoes.
We don’t want to see you sell every last future payment you’re entitled to receive: we want to help you solve your present dilemmas while preserving your future. And we’ll even show you what we think we’ll make for doing so! Who else does that? No one. That’s why there’s Settlement Giant.
Actually, it takes longer, more like 90-120 days, and reasons for that are found in the law and how third parties (like the insurance company that administers your payment stream) have to be involved to handle matters. We manage expectations and we don’t make false promises. Things don’t always happen as planned, but we try to find reasonable solutions – along with fair, reasonable explanations – to the realistic problems that you and we all face from time to time.
First, specific information has to be disclosed in writing by law, typically before you can even sign a contract to sell payments, sometimes up to 14 days before you can do so. And, sorry: it’s bogus for a disclosure statement that you have to receive some number of days before you’re allowed by law to sign a related contract to read that you’re signing it before you sign a contract if you sign both on the same date. That’s not how we do business. Instead, we play by the rules and provide additional meaningful disclosure.
Then, it may take a few days or a few weeks to obtain documents from you so we can perform necessary due diligence.
Next, a court permitted to review the proposed transaction must be asked to do so and schedule that review. The judicial process itself is fairly quick, simple, and painless, but involves time, from making required filings and finding time on the court’s calendar, to obtaining a court order approving the proposed transaction and having the annuity issuer acknowledge the court order in writing. Some judges will sign an order to approve a transfer as soon as they decide. Others require that the order be presented later and don’t sign off for a few days. Some insurers take as long as 30 days after receiving such a court order to acknowledge that they will honor it, even if they’ve participated in drafting and reviewing it.
After that, final due diligence takes a few days before a proposed transaction can be declared clear to close & fund.
If yours is a structured settlement payment sale, the law of your home state requires a court to determine that it’s in your “best interest” to conduct the proposed transaction. If the court doesn’t agree that the proposed sale is in your “best interest”, then your proposed transaction won’t be approved.
Chances are the court will not approve your proposed transaction if you don’t really need to conduct the transaction in order to achieve your goal, if there is some other reasonable way for you to meet your needs, if you’ve sold payments before and it doesn’t seem like you’ve done with the money what you said you would, or if the court views the terms and conditions of your proposed transaction to be unfair. Some judges seem to disfavor such transactions, perhaps because they’ve seen too many before that didn’t make good sense. That’s why it’s so important that a proposed transaction be necessary, be fair, and be supported by the facts, not by someone’s profit motive.
What good is $500 or $1,000 now if you need $50,000, $100,000, or more to solve a crisis? That extra $500, $1,000, $5,000, however much it is that others appear to offer is usually baked into their offer to you. Instead, we’re prepared and willing to pay more, sometimes thousands or tens of thousands of dollars more that you really need, for the same payments, because we want to be the company that every payment seller would choose, with the highest offers, best practices, and most respect.
The various numbers you see and hear are disclosed to you because your home state passed a law requiring disclosure of that information to you. Some of those numbers have real-world meaning to you, but others don’t. But, then again, most things in life are like that: some of it matters to you while some of it is just there because someone else decided it has to be there even if it doesn’t apply to you, doesn’t help you understand the process better and is included only because it can help others even if it doesn’t help you.
Of all those values, we think “discounted present value” (also called “present value” and “time value”) is the most important because it applies most to you. When you think about how a dollar today is worth more than a dollar years from now, because the future is uncertain and because when prices go up (as they almost always do) a dollar later then would do less for you, the idea of “discounted present value” is clearer: getting something less than a dollar today in exchange for the dollar that comes later.
Put another way, how much would you pay right now so that you could have $100 a year from today? You’d pay something less than $100, so that you’d earn something for the time it takes to get to the $100 a year from now. That right there is the concept of “discounted present value”: something less now for something more later. And the further out in time you go, the less that future dollar is worth today because there’s more time to cross with more uncertainty, more expected price increases, and so on.