Structured Settlement & Annuity Financing

There are several ways to finance a business beyond the usual sources of personal savings and bank loans. Did you know, for example, that you could sell personal assets, such as structured settlements and fixed annuities? This method of financing is just one of several commercial lending options that we can offer to help you meet your cash flow needs and capital requirements.


A structured settlement is an agreement for the periodic payment of damages or compensation. Such arrangements are made when claimants decide to settle a lawsuit. The defendant has the obligation of making those periodic payments. This staggered or structured way of receiving the awarded amount is an alternative to lump sum settlements.

Annuities, on the other hand, accept and grow funds from an individual and then, upon annuitization, pay out a stream of payments to the individual at a later point in time. Annuities are primarily used as a means of securing a steady cash flow for an individual during their retirement years.

Selling Structured Settlements and Annuities

Despite having different mechanisms, the similar characteristic shared by these two is that they are both periodic sources of revenue. While they are guaranteed income for the owner, there are situations where it would be preferable or maybe even critical to have lump sum cash on hand. Take note that structured settlements and annuities can be considered as assets and therefore can be converted into working capital.

You can choose to sell the whole structured settlement or annuity, or just part of it. The second option may result in a smaller amount but a portion of the periodic income is maintained. This financing option is similar to a loan in that a discount rate is applied. That means the business funding you receive from the sale is always less than the actual settlement or annuity value.

This may seem like a loss on the surface. However if you look at it in the context of having immediate monetary resources to capitalize on a business opportunity or to satisfy an immediate capital need, the gain may outweigh the loss.