Reasons Companies Buy Structured Settlements

Companies that buy structured settlements do so at a profit. The amount received by an individual selling either a part or the complete settlement is not the same as the value of the structured settlements sold. The money these companies earn is invested are used to run the company, pay employees, and advertise. A financially healthy structured settlement company is a safer option for an individual as there is less chance of the company going bankrupt. Also, the market standing of such a company would allow it to offer the best rates to their clients, use their own money to pay the clients. If they decide to take services of a broker, they will have to factor in the broker's charges which are ultimately paid by the structured settlement owner. Companies want to buy structured settlements because it guarantees a safe cash flow and is not taxable. Individuals use these companies who buy structured settlements when they are in need of quick cash and would like to swap their structured settlements for cash. There is not much work involved for those who buy structured settlements. The main effort is in marketing and obtaining court approval. The fact that structured settlements are guaranteed means that structured settlement companies can obtain debt at low interest rates and finance other ventures with that debt.