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As a featured commentator on The Legal Broadcast Network, Settlement Capital will be providing weekly commentary in both written and audio format for trial lawyers, settlement professionals and others interested in knowing more about the factoring transaction process.

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The Settlement Channel, the home for Settlement Professionals on the web. Settlement Capital is a featured commentator for The Settlement Channel on the topic of factoring.

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Thursday
Apr292010

The Problem with Factoring, Part 3 - Discount Rates  

In this continuing series on common complaints, problems and misconceptions with structured settlement factoring, Part 3 addresses "discount rates".  In short, discount rates are numbers expressed as a percentage used to calculate net present value of future cash flows (Investopedia). 

These are likened to percentage rates used to calculate loans (although factoring transactions are usually assignments or sales, not loans). 

Matt Bracy, General Counsel of Settlement Capital Corporation, discussed discount rates, the "real" value of payments, and how discount rates are calculated with Scott Drake of the Legal Broadcast Network in this two segment video interview. 

Segment One:

 

Segment Two:

We welcome your comments, questions or suggestions for future articles or videos.  You may comment here, or contact Matt Bracy via email at mbracy@setcap.com. 

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