Finding structured settlement buyers and selling structured settlements is slowly becoming one of the most popular ways to acquire cash instantly. For many, it is even better than securing a loan from a financial institution or someone they know since they do not need to pay for anything in the long run. Despite its growing popularity, finding buyers have not become easier. Here are some of the reasons why.
The expanding market
According to a study conducted by the National Structured Settlements Trade Association, more than $6 billion worth of structured settlements are written annually and this number is continually growing year after year. This growth can lower the structured settlement retention rate since the financial crunch is slowly creeping its way to Americans all over the country. This means that more people will become interested in selling their structured settlements for a lower price which can make it hard for sellers to keep up without getting less than what their structured settlement is actually worth.
Buyers, especially those who have years of experience, know how to make this growth work to their advantage by handing out offers that are less than what the structured settlements are actually worth in the hopes of finding a seller that will take the bait. The best way to ensure that you do not become this type of seller is to find a company to assist you in your transaction. These companies know how to find buyers that will not scam you in any way.
Buyers have more power
Even though the number of people who are selling their structured settlements to the structured settlement buyers is continuously growing, the number of people and companies who buy them is at a relatively stagnant rate. It is because of this stiff competition that buyers tend to have more power over a transaction since sellers do not exactly have a lot of buyers to choose from. This prompts sellers to think that they will not be able to find a better offer.
Hiring a company to assist you in finding a buyer can stop you from taking the first tempting offer that comes your way. They will analyze each offer for you and give you the best advice based on the buyer’s portfolio and other records. These companies also know how long sellers should wait before accepting an offer in the hopes of finding a better one to ensure that the value of the structured settlement does not plummet during the process of waiting.
Having little financial experience will not become a disadvantage
Studying the portfolios of buyers can be a tedious process since you will not just need to look for ratings and feedbacks from previous sellers. You will also need to look at some numerical figures such as the current APM’s of insurance carriers in order to figure out if they give low offers which can be challenging if you do not have any experience in finance. By hiring professionals to handle your structured settlement transaction, this would not matter since they know how the process works and how to interpret these figures properly.