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How to Trade in a Cash Structured Settlement for Money

It is possible to cash structured settlement payments in for some quick dollars if you are in urgent need, through what’s known as a payment exchange.

No doubt you are reading this because you are lucky enough to have a structured settlement that grants you some regular money.

There are thousands of people in the US who are in exactly the same position as you are, having received structured settlement money for a work-related injury or similar accident, who decided on the settlements instead of a lump sum.

Need Your Structured Settlement Payments Now?

It is possible to get a cash advance on your structured settlement through companies that specialize in this service. This practice is called finance factoring.

Actually, they are not proper cash advances, because there is no need to actually pay the money back per se, what you do is you merely exchange the money you receive now for a percentage of your future payments.

There are lots of reasons why people might want to cash a structured settlement in and get money right away. Future expenses are impossible to hedge against, and whether it’s medical expenses, bills, or some other urgent requirement, we have all found ourselves needing to come up with funds to pay for unforeseen expenses.

It might be that the original injuries you sustained in your work accident have developed into something more serious, and so as a consequence you need more money for your treatment.

Your cash structured settlement is a blessing but it can also be infuriating, knowing that next lump sum is just around the corner, but you have to wait to get your hands on it. What’s worse is you cannot just go out and get a structured settlement loan from the bank using the imminent payout as collateral, as they never accept it.

So what can you do to get hold of that much needed cash instead?

The Payment Exchange

A new option that just became available a few years ago, called the payment exchange, may be the answer.

These are offered by finance factoring companies that are willing to exchange your future payouts for hard cash in an instant. Instead of wondering why your bank won’t grant structured settlement loans using the future payout as collateral, you can go to one of these companies and get instant cash on the same day.

However, you need to be aware that by doing so, you will be losing a significant amount of your cash structured settlement in the long run. These companies aren’t cheap, and the deal will be favorable to them. But this is the price you have to pay to get your hands on that cash quickly.

One advantage of payment exchanges is that the money you do receive on the spot will be tax free, although you may have to pay a charge for legal fees as well, which acts as a counter balance.

You may also need to obtain a court order to process the transaction as there could be serious legal repercussions if you don’t. Make sure you find out what the rules are in your state before making any move.

Most importantly, just be aware that you will lose money in the long run. But sometimes, that’s a small price to pay when you have an urgent need, and a cash structured settlement advance can be very useful in getting you out of a tight spot.

As always, please let me know how I can help!


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