In one of our previous articles titled Structured Settlement Factoring Discounts, we clear up the differences between discount rates and interest rates applied to transactions. For this article, we are going to focus on the interest rates applied to structured settlement factoring transactions. Keep in mind that structured settlement factoring transfers are not typically done as loans.  The term interest rate or rate as applied in this article is the percentage of the principal which is paid/payable over a period of time. 

So what rate does Settlement Capital apply to its settlement factoring transactions?

The generic answer is it depends on many different criteria such as the size of the transaction, insurance company rating, length of term, and current federal interest rates. Although all of those do have an impact on individual transactions, there are other contributing factors that have affected the current interest rates for settlement factoring as well. Settlement Capital has had a significant impact on the overall lowering of rates on both an industry wide and individual company level. Here are just a few examples of Settlement Capital’s contributions in this regard:

• Settlement Capital Corporation General Counsel Matt Bracy over the past few years has contributed a significant portion of his time successfully participating in lobbying efforts in multiple states to seek enactment of structured settlement factoring transfer laws.  These laws now provide annuitants the opportunity to sell some or all of their structured settlement payments.
• Settlement Capital has made our internal court order processes far more efficient to make transactions smoother and reduce costs to customers. Our proficient network of outside counsel and good working relationships with insures are just a couple of examples of how we are able to incorporate efficient protocols into our process.
• Settlement Capital’s leadership position in the settlement factoring industry coupled with our knowledge of the product has opened doors to lower sources of funding, from Wall Street to individual private companies, that are unmatched within the settlement factoring industry today.
• Settlement Capital is continually trying to provide educational information to our brokers and customers so they can make better informed decisions about the settlement factoring industry as a whole. Our website and blog are just a couple of examples of how we are at the forefront of providing education about structured settlement factoring. 
• At the time this article was written, we have published rates in the American Cash Flow Journal (December 2006 – Volume 14 – Issue 12) for structured settlement factoring transactions to brokers that start at 10.5%. There are some situations where we can go lower than 10.5% and there will be some situations where we will be above 10.5%.

These factors, among others, have played a significant role within the settlement factoring industry in improving the factoring process for consumers and lowering rates for annuitants who may have a need to sell future structured settlement payments. As our rates go down, competitiveness in this market leads to other companies following our lead. Whereas interest rates were once in the upper teens as an industry norm, Settlement Capital is leading the industry by applying rates on structured settlement factoring transactions that can typically range from single digits to the low teens.

To find out exactly what rate would be applied to your specific structured settlement payment stream, contact Settlement Capital to get the best rate in the industry.