So why does a secondary market for structured settlements available to individuals exist in the first place?
It all stems from the credit crisis of 2008. Selling future payments for cash today to factoring companies has been an ongoing business for decades. But most factoring companies were either backed by a few wealthy individuals or by bank credit lines known as warehouse lines.
But along came the credit crisis of 2008, and even perfectly profitable and healthy businesses had their lines of credit shut off as banks went into turmoil.
When this happened, many factoring companies had to look to private individuals for the capital to purchase the future payment streams their customers sought to sell. They turned to financial advisers.
The larger factoring companies still maintain established credit lines and package their cases at an institutional level. But the financial crisis of 2008-9 drastically disrupted credit and capital.
Thus, a window of opportunity opened for individuals to purchase these future payments through advisers with relationships to various other factoring companies, at yields that far exceed comparable safe money alternatives.
The Secondary Market Annuity as a consumer option is a positive byproduct of the credit crunch. It is not a market that is too good to be true, but it is a market that is too good to last. When bank credit lines start opening up again, it’s quite likely that this marketplace for individual investors will become more and more competitive and eventually dry up.
Quite simply, factoring companies will make strategic decisions to sell to one buyer on easy terms, rather than selling too many buyers one by one on difficult terms. It’s only natural.
What you might not know, however, is that we at SecondaryMarketAnnuity.Net ARE that one buyer on easy terms- we take a position in each and every case, and using our own capital, we provide the liquidity for factoring companies by buying the payments directly, then re-selling to you. We have insured your long term access to this market and are now only selling cases we personally have committed to buy. This is a distinct difference between us and other vendors who have no control or ‘skin in the game.’
Therefore, as an adviser or as an individual interested in this marketplace, learn all you can and get in with the best. Sign up on this website to see our exclusive inventory, with the best buyer focused purchase process, and get in while the getting is good.