STRUCTURED SETTLEMENT BUYOUT · RUNS IN YOUR BROWSER · NOTHING UPLOADED

What yearly rate is the structured settlement buyer charging you?

A factoring company offers cash today for payments you are owed later. The offer shows two dollar figures and hides the rate. Type the payments you would sell and the cash offered. It shows the yearly discount rate the buyer earns, cents on the dollar, what the payments are worth at a rate you call fair, and what the same payments would fetch at lower rates, so you can counter and shop the offer.

Planning arithmetic on numbers you type in. Not legal, tax or financial advice. The example figures are placeholders, not a real offer.

1. The payments you would sell

2. The offer

Questions people ask

What is the discount rate in a structured settlement offer?

It is the yearly interest rate at which the payments you would sell are worth exactly the cash you would get. Factoring companies earn their profit as the gap between what the payments are worth at a normal rate and the cash they hand over, so a high rate means a big gap. This tool solves for it from the figures in the offer: the payments, their dates and the cash.

Is 15% or 20% a bad rate to be charged?

Compare it with what you could borrow at, since selling payments is a form of borrowing against them. Many sales are priced well above ordinary loan and mortgage rates. This tool does not say whether to sell; it shows the rate so you can compare it with your alternatives and ask other buyers for quotes.

Why do fees change the rate?

Legal and court costs, transfer fees and any amount withheld come out of the cash you actually receive, so the buyer's true return, and your true cost, is computed on the net. Type the fees from the offer and the tool shows the rate on the net as well as the rate on the headline figure.

How do I counter an offer?

The table shows what the same payments are worth at a range of yearly rates. Use it to see which rate your offer corresponds to, then ask for a quote at a lower one, and get quotes from several buyers. Many states require a court to review the sale and some require independent advice; read your own paperwork.

Does this handle life-contingent payments or taxes?

No. It assumes every payment you list is certain to be paid on its date. Payments that stop on death, tax consequences, state rules and the court approval process are not modelled. Confirm anything that matters with a lawyer or tax professional before signing.

Is this financial or legal advice?

No. It is arithmetic on numbers you type in, with simplified assumptions: monthly payments, an optional yearly step-up, up to two lump sums and effective annual rates. The example figures are placeholders, not a real offer.

Not decided

Whether to sell at all, whether any payment stops if the payee dies, taxes on the payments or the sale, your state's court-approval and disclosure rules, other buyers' quotes, whether you could borrow instead, what the cash is for, and whether a smaller partial sale would meet the need. Every listed payment is treated as certain on its date, and the monthly stream is modelled as one payment per month starting next month.

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