Why Companies Purchase Structured Settlements

If you’ve got a structured settlement as the result of a lawsuit, or winning the lottery, you may be visiting a site like QMAP to consider the possibility of selling it for up-front quick cash. Investment Return.  The most compelling reason for a company or investor to get into the structured settlement purchasing business is the potential for huge returns on their investment.  Security.  Once the structured settlement sale has been agreed to and approved, the buyer is virtually assured to get the stream of payments he has purchased. Fees.  In addition to the return on investment that the purchaser will receive, they can also cover their upfront costs by charging a fee as part of the structured settlement sales transaction.
Of course, the purchaser of the structured settlement has a pretty full plate. To get into the business of purchasing structured settlements, the company must have quick access to cash.  If the settlement purchaser does not have the cash on hand, he must somehow secure it elsewhere – this means a cash advance on which he will have to pay interest.  He’ll likely also incur legal fees getting help with the purchase contract, navigating the court system, etc.  The sale of a structured settlement will have to be approved by the court.