Factoring companies are in the discounted cash flow  business.  They may:

  • Buy receivables from companies and collect those receivables from the company, customers thus giving cash to the company to continue their business operations without having to perform account receivable functions.
  • Fund insurance premiums, and collect premiums over time from individuals and businesses.
  • Buy discounted real estate or commercial notes receivable.
  • Buy payment rights from individuals.

In the case of Secondary Market Annuities, the factoring companies that we deal with originate the sale of future payments for cash today from individuals.  Structured settlement factoring companies are primarily marketing firms that must advertise heavily and aggressively to find people who wish to sell future payments for cash today.

Large Factoring Companies

It’s quite possible that you have heard advertisements for companies like JG Wentworth on TV, radio, or on the Internet.  They are advertising for people with annuities or payment streams, who wish to receive cash now.

Some of the larger factoring companies purchase future payments for their own account or future syndication in bond issuances. JG Wentworth in particular does not sell structured settlements to individual investors, but rather bundles what they buy from individuals into institutional bond offerings.

But there are many other factoring companies who commit to buy future payments from individuals, and then make those future payments available to brokers and advisor, who in turn make these available to you as a private end investor.   During the timeline of the payment purchase process, you as the end investor enter the transaction as a buyer.

Perils Of Dealing Direct:

It’s critical to note that buying structured settlement annuities direct from factoring companies exposes you to significant liability and risk of loss.  Factoring companies are in the business of maximizing their profit.  They have no fiduciary duty or responsibility to you as an investor.

To buy direct from a factoring company is like buying a house without a title insurance policy.  It would be crazy to buy a house without title insurance, and no lender would loan you money without it.  So why risk your life savings to buy a deal direct from a factoring company, when you can buy it with complete legal review and proper oversight from professionals who are completely buyer focused?

Be sure to join this website to see the world’s largest inventory of Secondary Market Annuities and gain the benefits of a completely buyer focused, legally protected, and third-party escrow controlled transaction process that puts you in the safest position possible.