Do you have a structured settlement? The structured settlement cash now guide can help you get a cash payment quote. Find out how to - Cash In a Structured Settlement.

> Free Consultation - Get structured settlement help regarding selling your annuity future payments. HAVE A Structured Settlement Purchaser Factoring Representative Contact YOU, this site will forward your questions & requests to an established finance representative/company.

In the beginning, the factoring industry had some relatively high discount rates due to heavy expenses caused by costly litigation battles and limited access to traditional investors. However, once state and federal legislation was enacted, the industry’s interest rates decreased dramatically. There is much confusion with the terminology “discount rate” because the term is used in different ways. The discount rate referred to in a factoring transaction is similar to an interest rate associated with home loans, credit cards and car loans where the interest rate is applied to the payment stream itself. In a factoring transaction, the factoring company knows the payment stream they are going to purchase and applies an interest rate to the payment stream itself and solves for the funding amount, as though it was a loan.

Discount rates from factoring companies to consumers can range anywhere between under 8% up to over 18% but usually average somewhere in the middle (link to a discount rate calculator can be found here). Factoring discount rates can be a bit higher when compared to home loan interest rates, due to the fact the factoring transactions are more of a boutique product for investors opposed to the mainstream collateralized mortgage transactions.