For people that are receiving future payments from an annuity or structured settlement it is often a difficult decision to consider selling some or all of their future payments for cash. However, when a settlement recipient has exhausted all other forms of gaining financial help or freedom and has made the decision to sell their payments there are some situations you may want to be aware of that selling your payments does not make sense.
The first is when you have too few payments remaining. The companies that purchase future payment streams are called “factoring” companies. The are buying the payments that wont come in for many years in exchange for a lump sum payment today. Like any company, no business works for free and or provides services that lose money. In the case of factoring companies they are often unable to purchase future payment streams when their are too few remaining. There is no set rule so you should contact one of our advisors to get more information. But if you only have a few remaining payments coming you may not find a company that is able to provide lump sum. However, it is always worth a phone call and exploring your options.