The structured settlement sales industry has grown by leaps and bounds, as more and more settlement holders realize that they don’t have the financial stability they need or the means to meet new challenges in their lives. These individuals turn to structured settlement sales companies for help – they have cash, they just can’t get at it. Selling their structured settlement gives them a lump sum payment to meet those challenges in any way they see fit. However, not all structured settlement sales companies are created equal, and there are some significant benefits to working with a company that uses “certified” funders.
What’s a Certified Funder?
Let’s start this discussion with a look at what makes a certified funder, well, certified. First, understand that some structured settlement sales companies will take all comers – if the company wants to buy a structured settlement, why shouldn’t they be allowed to? That’s not the right way to approach this. Funders aren’t always on the up and up. Some of them have some very serious problems that lead to issues with the sale.
A certified funder is one that has been thoroughly investigated, vetted and shown to be free of these problems. Settlement holders are urged to only work with a structured settlement sales company that requires their funders to meet stringent conditions. For instance, a certified funder should be accredited with the Better Business Bureau and should have no more than five complaints in their history with the organization. The company cannot be a broker, either.
The company must be willing to offer the best upfront pricing without the need to haggle. The company must be committed to providing fast service. Of course, the company should have no defaults in their history, and they need to be able to prove at least three years of active history. The company has to be located in the United States, and it cannot be a local firm (nationwide firms only). Finally, the company can’t engage in any anti-competition practices.
An Environment of Competition
In addition to using certified funders, the structured settlement sales company you choose should require that those funders compete for your business (thus the need for not anti-competition practices). By requiring funders to bid for your structured settlement, you are able to take advantage of better rates and get more money for your sale in the end.
Peace of Mind
While many of the advantages of working with a certified funder result in tangible benefits, there are some intangible ones as well. Peace of mind is perhaps the greatest of these – you get the peace of mind that comes from knowing you got the best deal on your structured settlement. You get the peace of mind that comes from knowing you got the terms that work for your situation rather than being forced to accept what a funder offered because you had no other choice.
As you can see, working with a certified funder is the best way to go.
Have you ever sold a structured settlement?