Do Factoring Companies Deserve their Reputation? In the eyes of some structured settlement consultants and lawyers, factoring companies are regarded with scorn and spite for allegedly undoing the good that they’ve done for their clients. Sounds reasonable, at least until reality enters the picture. Structured settlements are good vehicles for long-term stability, but they aren’t for everybody all the time. Time passes and circumstances change. Whether hardship or opportunity strikes, clients with assets such as a structured settlement may be better off selling it for a reasonable discounted rate in order to gain access and reap the benefit of the cash now.
Are all factoring companies alike? Absolutely not. There are big investment houses who gobble up annuities and structured settlements at astronomical discount rates without regard to the seller, and then there are companies who want to be the alternative. The companies who encourage second bids can more likely be trusted as competitive bidders. In this internet age it’s hard to imagine someone not realizing the wealth of choice in any marketplace. But, once a predatory company gets a hook into a seller, he or she is allowed little wiggle room to get away until the ink on the deal is dry.