Feed: Cash Flow Notes - AggScore: 43.3

A Summary Of The Notes Business

`````````````````````````````````````````````````````````````````````````````
With the state of the economy and the dire straits in which many individuals and families are finding themselves, many people are searching out ways to increase their monthly income and one choice is the cash flow notes. There are many people that have been awarded judgments in malpractice suits or insurance settlements due to a car accident or some other form of injury at no fault of their own with money from the awarded judgment coming in each month.

However, very often this awarded cash flow note is spread out over many years and does not provide enough income to meet monthly bills or other unexpected expenses. Wouldn’t it be great if the bulk of these awarded judgments be collected all at once? You could payoff medical bills or other pressing bills that are causing stress in your life and reduce the amount of worry that is associated with a stagnant economy.

Others have a monthly cash flow notes in the form of a lottery winnings that are paid out over many years. In some cases this is an excellent choice for lottery winners since statistics show that lottery winners given a lump sum payment of winnings very often end up broke and in debt. However, if you are a lottery winner and have the discipline to control spending and invest wisely, selling your monthly cash flow note may be a wise option.

Another group of people that can benefit from selling a cash flow note are mortgage note holders. There are many people that have real estate holdings either in private residential property (houses) or commercial property (buildings) that could benefit immensely by freeing up cash that could be invested elsewhere to increase profitability.

Pit Falls Of Cash Flow Note Selling

Although people that have a structured settlement that provides them with a monthly income, some people are not candidates to sell their note. It should be emphasized that when selling a cash flow note that the seller will not receive the entire amount of the original balance. Note buyers offer lump sum payouts for cash flow notes at a reduced amount, usually around 80% or lower of the sum total. Note sellers will receive a lump sum at the discount but for people that are undisciplined in financial matters will very often find themselves in financial distress once they blow through the lump some paid out.

Although the initial cash flow note settlement is not enough to make a significant impact on monthly bills, the note holder will still have this money coming in each month. Before selling your structured settlement, careful consideration should be given to the possible financial implications once the note is sold and the lump sum payout is spent.

The Best Reason For Selling Your Cash Flow Note

People that are schooled in financial matters that have a cash flow note are the best candidates for selling a note that is currently in place. These people usually have cash flow notes generating income from real estate holdings and usually sell a note to free up cash for other investments to increase their monthly cash flow.

Other candidates include structured settlement holders that need to sell their settlement in order to meet obligations such as emergency medical situations or to avoid foreclosure on their homes. Another acceptable selling situation would be in order to pay for a child’s education once all other forms of funding have been exhausted.

Selling a structured settlement, lottery winnings, annuity payments or real estate notes can be profitable for the note holder, but careful consideration should be given to the financial health of the seller once the sale is final. Many times note sellers regret selling their cash flow notes because they have not taken the time to do the proper research to make an informed financial decision.

______________________________________________________________________________
Structured Settlement Broker - Understanding How Structured Settlement Brokers Work

The goal of a structured settlement broker is to help you put together and negotiate a settlement that makes sense for you.

Just to be sure we're on the same page... a structured settlement is a way of compensating someone who's been injured.

They're also used to pay out lottery winning jackpots... (that's of course, for most people, the preferred reason for getting a structured settlement!)

How Exactly Does A Broker Operate?

Part of what a broker will do is work with attorneys to find the best structured settlement plan for their client. They can also help with the sale of a structured settlement.

A broker will have the total description of exactly what a settlement is offers and will be able to answer questions about them.

A big benefit to having a broker is that they are typically affiliated with multiple companies, which means they can shop around with you for the best deal.

The Most Important Part Of Planning A Structured Settlement

A broker will help you answer and address the most important parts of your situation: getting you a structured settlement based on your current and future financial needs.

Far too many people make the mistake of not thinking enough about what they really need and regret it later on!

Exactly What's Included In A Structured Settlement

Most people think a structured settlement just pays out to the victim over a longer period of time.

While this is true, structured settlements will often include cash up front to pay your attorney and any immediate medical expenses.

Keep in mind: Once a structured settlement has started, there's no way to change any of the terms or payment amounts - so make sure you do all the right research beforehand so you get the best deal.

That being said, you can always "cash out" our structured settlement by selling it for a lump sum cash amount.

A broker can be a tremendous help to you if you're thinking of selling your structured settlement.

Broker selection tip: DO NOT work with a broker who has an exclusive arrangement with one company. There are plenty of honest brokers who can work with multiple companies to get you the best deal.

Qualifications Of A Good Structured Settlement Broker

Do your homework up front and make sure your broker is registered with the Department of Justice. Also - and this next part is huge - make sure they're insured!

To learn much more about the pros and cons of structured settlements, including how to buy structured settlements, visit http://www.Structured-Settlement-Tips.com



Five Reasons To Sell Structured Settlement Payments

A structured settlement is a legal payout where someone who's been injured and otherwise hurt is given monetary compensation. A structured settlement annuity come in the form of a series of payments made over the course of a period of time. The bonus to this type of payment is that the aggrieved gets a steady stream of income coming in for a long period of time, the downfall of this type of settlement is that the person getting the funds might find themselves in a situation where they need a lump-sum for unexpected expenses or a big ticket item they might have their eyes on.

To consider the nature of some of the unexpected expenses someone receiving settlement payments can incur, one needs to consider the nature as to why people receive a structured annuity. Often, the settlement comes as the result of a court case where the claimant receives money as a result of some accident suffered. Often, these injuries can be severe enough the claimant could have serious medical conditions arise, conditions that might only show up after the person has settled there case.

They might need some quick money for an operation and selling off settlement annuity payments is a good way to get the cash owed to them in as little as 6 to 8 weeks. Of course, medical emergencies can quickly arise with any member of a family as well.

Another reason to sell off a structured settlement rings with a more positive note. As there are no legal reasons why a claimant cannot decide to sell off this asset, some of the more shrewd claimants keep an eye on the stocks and other markets to see if they can't transfer a lump sum from an annuity into another kind of moneymaker. Still, when considering this, it's important to realize that selling off a structured settlement will include a fee to the company helping you with the transaction.

Some of the people receiving a settlement annuity think about investing in something that's a little more tangible. A fair number of these claimants decide to buy homes with the proceeds from a structured settlement factoring transaction because the investment is something they can enjoy and pass along to their families when they pass on. Again, selling off these payments for this purpose demands careful attention to detail. Often, first time homeowners don't factor in all the little 'hidden' expenses that go with homeownership and these expenses can be especially worrisome when there's no stream of income coming in.

The final reason to sell off a structured settlement is perhaps the most realistic but at the same time the saddest. Often due to the nature of their injuries, people receiving structured settlements have shortened lifespans. So, it's not unusual for these people to want to take care of their families and cashing in a portion of their settlement annuity can help their families live a better life.

Read more articles at Settlement Quotes structured settlement blog. To sell structured settlement payments visit us and we can offer you 6 cash offers from competing investors and funding companies. If you would like to sell annuity payments Settlement Quotes will provide upfront quotes from the industries top annuity funding companies.

Article Source: http://EzineArticles.com/?expert=James_Grace



Structured Settlements - The Benefits of Having Cash in Hand

Mr. Lane, a business associate and friend of my in-laws retired this year. In addition to Social Security, he began collecting monthly payments on two different annuities he started many years ago. And though the income from these annuities is enough to allow him to continue his lifestyle, he doesn’t seem to be very happy.

I overheard a conversation this man had with several people at a family gathering. He was saying that he thought retirement would be more exciting. Mr. Lane has been a widower for more than 10 years and wants more from life than the same routine he has had for the last 40 years. He said he wanted to see the world, really see the world. He was talking about non-stop traveling for the next year or more. He also spoke of buying a vacation home in the tropics. He secretly told my father in law that he didn’t have the funds to do these things. But he may be mistaken.

The annuities he holds are valuable assets. He receives monthly payments from the annuities for a pre-set number of years. If he dies before the term is over, the payments may be received by his heirs. The monthly income from both annuities is significant but it seems this man would rather have cash to have some fun in his retirement. Is there a way to achieve this? Yes.

There are both companies and investors willing to pay cash up front in exchange for receiving payments on private real estate mortgages, lottery winnings, structured settlements annuities and other ‘cash flow’ assets. Such companies often have a variety of options available and are eager to meet the needs of their clients. There are several options available to Mr. Lane. Let’s take a look at a few:


He could receive a single lump sum for one or both of his annuities. In this case he would assign his rights to receive future payments to an investor and end up with all cash.
He could assign an investor the right to receive a portion of his payment for the entire term of the annuity or for only a specified time, say five years. In this case he’d get a lump sum up front and part of a monthly payment while the remainder of the payment would go to the investor.
He could assign his right to receive payments for a specified time. In other words, he might choose the term of seven years. So, for seven years an investor would receive payments from the annuity. At the completion of the seven year term, payments would revert back to Mr. Lane.
There are many companies in the business of purchasing income streams or investments. Some can be very creative in structuring a plan where the holder of a cashflow asset receives the funds they need while maintaining a portion of the payments for the future.

Hey, I just got a post card from Belize. It’s from Mr. Lane. He says, I’d love it there. I think he’s right.

FutureAnnuities of America helps people who need to sell their structured settlements for a lump sum of cash. We help our clients get a fair price for their payments. Get more information regarding structured settlements.

Factoring vs Invoice Discounting

Both factoring and invoice discounting can be described as ways to get immediate cash by selling accounts receivable to a third party, usually a finance company. In fact, the two methods are more similar than they are different.

Factoring, also referred to as asset securitization, is an outright sale of receivables to the finance company. The business gets cash and the finance company collects the debt, keeps the interest and gets a discount fee on top of that for its trouble. Invoice discounting can also be termed a sale of receivables, but in this case administration of the receivables and their collection does NOT change hands. The business that earned the income still holds that responsibility.

Here are some questions to consider in order to choose which method is best for your company:

1. Are you concerned with the cost of collections in your company? Are they getting out of hand? Is your collections area fully staffed with competent and reliable personnel? If you think your company would be better off reducing the amount of resources devoted to this function, factoring is the better choice for you, as a lot of it, but not all, can be offloaded to the finance company. If you already have a well-working collections department you might rather choose invoice discounting. That way your staff and procedures regarding collections remain in place.

2. Knowing that the finance company will undoubtedly treat your customers with the utmost courtesy, respect and professionalism, are you nevertheless concerned that he may prefer to be dealing directly with your company? Perhaps billing requests often come together with customer service requests. Your customer is generally not aware of the sale of his receivable to you with invoice discounting. Not only is he aware of a factoring arrangement, but also he is subject to confirmation calls on individual invoices by the finance company on occasion. If this is something you know would disturb your customers you may need to choose invoice discounting.

3. What are your current informational needs with regard to collections efforts and your customers? Do you currently collect this data and rely on it to make future credit decisions for this customer? Can the finance company provide it in the format and frequency you desire? If not, invoice discounting may be the right choice, so all your current data collection techniques will not be disturbed.

4. What are your cash requirements? With either factoring or invoice discounting, you are paying for the immediate cash. Doing the collections yourself at a normal rate would return you more actual cash. But invoice discounting returns you more cash than does factoring. This is, obviously, because the finance company takes on more responsibility and more duties with factoring than with invoice discounting.

5. How large a portfolio of unsecured receivables does your company hold? How diverse is it? Are there any single customers who hold more than 20% of the total receivables balance? Generally, companies using invoice discounting tend to be larger and have a more diverse portfolio. This could be why they chose invoice discounting, however, rather than a characteristic. They already have the collections efforts and data collections methods in place and the cost and difficulty involved in changing them might be prohibitive for a factoring arrangement. Diversity in the portfolio is something finance companies look for under both arrangements.

Making an honest assessment based on these factors will allow you to make the right choice for your company. You’ll soon be on the way to a healthy cash flow, no matter which you choose.

Michael Russell Your Independent guide to Factoring


Article Source: http://EzineArticles.com/?expert=Michael_Russell




How Do You Factor Your Accounts Receivable?

So what exactly is accounts receivable factoring? Well very simply it is the process of obtaining funds by selling your company's accounts receivable. To go into a little more detail a company takes the outstanding invoices it is owed and sells them to a third party company called a factor. By doing this the company selling the invoices receives an up front payment on the invoices instead of waiting thirty or more days to be paid. When the invoice does come due the payment is sent to the factor instead of your company. Sounds great right? Well it's not all roses. If you're considering going this route you'll need to do your homework. If you don't you might pay a pretty hefty price.

Now depending on who you talk to accounts receivable factoring can be a great thing or it can feel like you are borrowing money from a loan shark. Each experience is different and some companies are on the up and up while others you won't want to touch with a ten foot pole.

So you can better understand the experience we'll walk you through what happens. Now assuming you've got a factor you're intending to work with we'll start from the point of the sale. You've just finished a large project for a customer. You issue your bill to them. The first thing the factor is going to want to see is someone's signature that shows they were satisfied with the work. But let's say you sold them a product that was delivered at the dock. A receiving clerk's signature is not going to cut it. You are going to need to get the signature of the person that authorized the purchase to begin with. They are going to need to sign the invoice and probably another document that verifies the purchase was legitimate and they plan to pay for it.

Next you are going to need to fax those documents to the factoring company. But you can't do this from your office because you might have forged those signatures. No they need to be faxed from the customer's office. And once the factoring company does receive the documents they may still want to call and verify the purchase. Now if the purchase was for a significant amount of money all this hassle may be worth the trouble but what if the purchase was for a few hundred bucks. Not worth the trouble you say? Well we have a problem with that too.

You see when you first sign up with a factoring company they want to know what companies you do business with. And which of those you want to have the invoices factored. This is because those companies that you decide are worth factoring have to be notified that this is going to be the case. And the factor will want to run a credit check on the company. Your customers will also be notified that they must now send their payments to the factoring company instead of you. This task also will be left up to you. The problem is that if you do not factor an invoice the company you are billing must still send its payment to the factoring company and not to you. This will actually cause that particular payment to take longer than necessary to reach you because it will go to the factor first and they have to release it to you.

Once your invoice has been submitted to the factor from your customer's location you need to check and make sure it was actually received and there are no problems with it. After the factor receives the invoice it should only take about twenty-four hours to be approved. Most factors have a cut off time each day to receive an invoice if you want to receive your money the next day.

After the factoring company has approved the invoice you will receive a wire transfer to your bank. From there the money is yours to do as you will. Many factoring companies want you to believe that using accounts receivable factoring is the perfect way to get the money you need to grow your business. The truth is that it is not suitable for many types of businesses. Your billing methods need to be very straight forward to help make factoring work. And it helps if you issue fewer invoices but for large amounts of money. Otherwise having to do all the leg work can take you away from what really matters. And that is focusing on your business.

Cash Miller is an experienced entrepreneur and speaker who has spent over a decade as a small business owner. His years in small business have provided experience in a variety of topics. If you are looking for more small business information you can go to http://www.smallbusinessdelivered.com

Article Source: http://EzineArticles.com/?expert=Cash_Miller


Purchase Order Factoring - Short-Term Solution to Finance Large Purchase

The first aspect to acknowledge when seeking purchase order financing is that most factoring companies are very choosy when dealing with this type of financing. There is not a firm set of regulations to follow concerning invoice financing because each situation is very unique and has to be assessed as such. It is typically very difficult to find purchase order financing however, there are factoring companies out there that are willing to take that type of risk.

Purchase order factoring provides existing businesses with a financial solution to continue operating. However, it should be mentioned that these companies typically will only finance those businesses with a proven track record in their said industry. Turning purchase orders around into account receivables is a business solution that will free up working capital and extend finances to the business in a timely manner.

Purchase order factoring should be considered a short-term solution to finance a large purchase or to manufacture specific goods that are already sold. For example, if a company manufactures iron staircases and a popular building company has given a invoice to order a set number of them, factoring can come in extremely handy. It is unlikely that the manufacturer of the staircases has an over abundance of operating capital to purchase materials and manpower for all of these staircases. Most often, banks won't touch this type of financing so the feasible and low cost solution is to seek out a reputable purchase order company that can advance cash on that invoice.

When purchase order financing companies assess a specific invoice financing request, there are several determining factors that have to be understood. If the company that has issued the purchase order is not credit worthy, it is likely that the invoice factoring company will not lend assistance. Purchase order financing is a very risky business due to the nature of the business. The company is lending money on the premise that the company that has issued the invoice will pay for the goods or services. It is easy to see that any purchase order company would have to be very stringent with their rules surrounding this area in order to be successful. These companies are sticking their necks out to supply a potential customer with the funds required to fulfill their end of a invoice agreement. It is completely understandable that they would be picky and selective in choosing this set of clients.

In order to be considered to qualify for purchase order financing the business seeking financial help must have been in business for no less than a year. The type of transaction that is being considered for invoice factoring must be prominent in the business history and have at least a $100,000 transaction minimum. There are several issues that will depend on the type of industry the business is in and the credit history of the business and the customer.

Troy Degarnham is the author and webmaster of http://www.accounts-receivable-financing.info an informative website about Invoice Factoring.

Extensive help and tips on factoring companies, assets, small business, purchase order factoring, non recourse and other factoring financial services.

Article Source: http://EzineArticles.com/?expert=Troy_Degarnham

Invoice Factoring is a financial transaction whereby a business sells its accounts receivables, also known as invoices, at a discount. Factoring differs from a bank loan in three major ways. First, the emphasis is on the value of the receivables, not the customer's credit worthiness. Second, factoring is not a loan, it is the purchase of an asset (the receivable). Third and finally, a bank loan typically involves two parties whereas factoring involves three. Companies which offer factoring services will provide you with a factoring quote as to what your accounts receivables are worth.

A company sells its invoices, even at a discount to their face value, when it calculates that it will be better off taking less of a profit than it would be by attempting to function as its customer's "bank." In other words, it figures that the return on the proceeds will exceed the income on the receivables.

The three parties directly involved are: the seller, debtor, and the factor. The seller is owed money the debtor. The seller then sells one or more of its invoices at a discount to the third party, the specialized financial organization, the factor, to obtain cash. The factor will give the seller a factoring quote as to what the receivable is worth. The debtor then directly pays the factor the full value of the invoice. Factors make funds available by focusing first on the credit worthiness of the debtor, the party who is obligated to pay the invoices for goods or services delivered by the seller.

In contrast, the emphasis in a bank lending relationship is on the creditworthiness of the small firm, not that of its customers. While bank lending offers funds to small companies at a lower cost than factoring, the terms and conditions under which the small firm must operate differ greatly. Bank relationships provide a more limited availability of funds and none of the bundle of services that factors offer.

From a cost and availability of funds perspective, Invoice Factoring creates wealth for some but not all growing small businesses. For these businesses, their choice is slowing their growth or the use of external funds beyond the banks. In choosing to use external funds beyond the banks the rapidly growing firm's choice is between seeking angel investors for equity or the lower cost of selling invoices to finance their growth. The latter is easier to access and can be obtained in a couple of weeks compared to the six months or more that securing funds from angel investment typically takes.

Invoice Factoring - Acquiring The Financing You Need To Run The Business

Looking for small business financing has always been a challenge for company owners. Even in good times, qualifying for the financing you need has been difficult. As a rule, most banks require that your company has a track record of success and they need a few years worth of financial history. Most importantly, institutions want to make sure you have collateral - things like equipment and real estate - to back your business loan. Because of this, many industries with no hard assets such as staffing and consulting have a hard time obtaining business loans.

There are others form of financing that can help business owners - at least in some specific situations. One form of financing that has been gaining traction in the past few years is invoice factoring. It can be an ideal solution for companies that are waiting 30 to 60 days to get their invoices paid, but need the money sooner.

For example, let's say that a construction company invoices $150,000 to a client that will be paid in forty-five days. In the meantime, the construction company needs to pay employee salaries every two weeks. If the company does not have enough funds to pay employees while waiting to get paid, then it have problems meeting payroll and a very real possibility of losing contracts and clients. In this case, a solution is to get an advance on the invoice by factoring with an invoice factoring firm.

In a invoice factoring transaction, the factoring company advances funds against an invoice. The advance is usually 70% to 90% of the invoices and varies by industry. The advance provides working capital that enables the owners to meet payroll and other business expenses. Once your client pays the invoice in full, you get the remaining funds, less the factoring fee. The fee varies based on a number of parameters but can range from 1.5% to 4.0% for an invoice payable in 30 days.

Qualifying for invoice or accounts receivable factoring is relatively easy, when compared to other business financing products. To qualify, the company must be in good standing, free of any liens and have a roster of good paying customers. Invoice factoring companies consider your invoices to be your biggest asset and are very happy to use those as collateral. That makes their services accessible to companies of all sizes, including start ups. More importantly, it provides funds to companies whose biggest assets are a good reputation and a list of solid clients.

What you Should Look For In A Invoice Factoring Company

Invoice factoring companies are companies that fully manage a business’s sales ledger, and ensure collection of all the debts due. Invoice factoring companies buy invoices or receivables from a business and advances 80 to 90 percent of the invoice amount. The remaining amount minus the charges will be paid when the customer clears the debt. The invoice factoring company takes the responsibility of informing the customer about the service. The seller receives the amount within 24 hours in most cases.

Invoice factoring companies are advantageous to businesses in that they provide the working capital needed when the clients fail to pay on time. They demand no collateral and are therefore hassle free.

Invoice factoring companies gain from the service charge and the interest charge for the cash advanced to the business. The service charge is usually a certain percentage of the sales factored and the service charge is calculated usually depending on the annual turnover of the company, the number of invoices and the number of customers. The interest charges are along the lines of normal secured bank overdraft rates. Some invoice factoring companies provide bad debt protection whereas some do not. While this is termed non-recourse factoring, recourse factoring is the policy when the bad debts remain with the business.

Invoice factoring companies are a large group, existing as units within many commercial banks, as sections of large financial institutions, as companies, and as services offered by individuals. When choosing a factoring company, extreme care is to be taken regarding its terms and conditions, reputation, service, bad debt protection, service and interest charges. It is also best to verify whether the company chosen provides Internet access to one’s account so that the sales ledger and customer details can be constantly monitored. It is also crucial to ensure that they promote a good customer relationship.

Structured Settlements

What is a Structured Settlement? A Structured Settlement is a Settlement in which you receive "Structured" payments on a regular basis. In other words, it is a payment plan, in which, instead of getting a large lump sum, you receive smaller payments in increments. These increments go on weekly, monthly or yearly cycles. These settlements are often known as a win-win situation because the payer needs to come up with a lot less money up-front and the payee has a steady stream of income coming in at all times. This process can also be described as Annuity.

When are structured settlements used? Structured Settlements are often, but not limited to, these common situations:

1. Lottery Winnings - Often times, in the Lottery, you can opt to receive numerous smaller payments in exchange for a single larger payment. 2. Malpractice Cases - In situations where a family member is lost or left crippled due to medical malpractice, the party may be entitled to a structured settlement over the span of the victim's life or as a grievance payment. These payments don't fix things, however, they are meant to make living a little bit easier for the victims and families. 3. Insurance Cases - In many insurance cases, this form of settlement is used. This is because it is easier to make smaller payments over a longer period of time as well as the damage left behind may be better dealt with over time.

Understanding these concepts are important in the process of properly handling your income. It is important also to understand how money works over periods of time. Over long periods of time the value of the dollar is likely to decrease. This means if one was to receive, for example, $1000 a month for 20 years, that $1000 dollars could only be worth $500 at the end of the term. This is one reason some people decide to sell their structured settlement for a large lump sum.

One people decide to sell their structured settlement there are numerous reasons behind it. The first reason may be that, due to their immediate needs, they need a larger amount of money right away. A good example of this would be when buying a new car or home. Another reason people decide to sell is because they would like to invest it into something that gains equity over time and actually grows in value rather than decreases. Some people want to fight the cost of inflation and take the monthly payments and re-invest. This is the wiser choice of the two most of the time.

When selling your structured settlement or selling Annuity, it is almost always advised that you do your homework first. Don't sell to the highest bidder right off the bat. Before hand you should read up on what your options are. Seek the help of a broker, a financial advisor and a legal professional first. By doing this, you can protect yourself from scam artist to defend yourself from transactions lacking in integrity. It is always smarter to take the safest route possible. Selling Annuity can be dangerous so it is always wise to make slow and steady steps.


Strategies for Handling a Structured Settlement Cash Award


Many consider research to be dull and often boring. But some people love doing it. And few in this rare group are also skilled writers who present their results in an engaging and entertaining manner. Like the author of this article on structured settlement cash award.

Read it, and you'll see how nicely fact and skillful writing are woven into a nice little article that is instructive and useful.

A structured settlement involves cash payments on a regular schedule from one party to another as a result of a legal judgment or binding arbitration (or even a simple agreement between the two parties to avoid a legal confrontation). For many recipients, the lure of a big lump sum of structured settlement cash in their hands right away is overwhelming.

Enter structured settlement cash companies. They offer to buy structured settlements in return for one big payout to the recipient of the settlement. They make their money, of course, by offering only a percentage of the total settlement amount in return for giving the recipient a bundle of cash at one time. This happens all the time, although some critics believe it is borderline illegal, or at the very least distasteful.

If you're in this situation and you decide to pursue a lump sum alternative, do your homework! Investigate the structured settlement cash company's history thoroughly. Check with the Better Business Bureau, search the Internet, and by all means, hire a competent attorney. There are some tricky legal issues at play in these cases, and you don't want to have problems later on with the law or the structured settlement cash broker with whom you've made these arrangements.

It's smart to take some time after you learn that you'll be getting structured settlement cash to get over the emotional high and return to more rational thinking. There is much to recommend keeping the structured settlement as is - that is, taking regular payments over time instead of selling the settlement for fast cash. One advantage is the tax shelter an annuity provides. You can set it up, with the help of a skilled attorney, so that it provides you with payments that are tax-free.

Now, pay attention closely. What you're about to read will help you save hours of frustrating, wasted hunting, and let you hone in on some of the best material on this subject of structured settlement cash award!

However, often there are high fees associated with the management of an annuity. While the fees seldom come close to equalling the tax advantages, some people simply prefer a large lump sum in hand. Reasons include wanting to make a big purchase they've been putting off, such as a new home, or to pay down delinquent taxes or medical bills.

If you choose to sell your structured settlement cash award for a lump sum payout, it's vitally important to hire a lawyer. Don't let the $ signs in your eyes overrule the reasoning part of your brain. Slick companies have been known to settle with some folks for as little as one-third of the total amount of the structured settlement cash award! Those companies rely on a significant number of people who jump before thinking it through. This is why an attorney is so crucial. He or she can help keep you in the right frame of mind.

Other reasons to enlist the aid of a trained structured cash settlement lawyer include dealing with certain legal restrictions, tax implications, and related obstacles. It varies from state to state, so be careful. Whatever you decide to do with your structured settlement cash, arming yourself with the correct information for your situation is the key.

Now that you've learned something about structured settlement cash award, maybe you want more information or need greater detail about certain specific issues. Please visit Structured Settlement Tips for more information.

Ideally, you will leave this article with an enriched perspective on the topic of structured settlement cash award. The facts and analysis presented here were written with a single goal: to help you the reader to learn more about this fascinating topic.

Ken Austin is the webmaster at Structured Settlement Tips and Structured Settlements and Annuities.

Article Source: http://EzineArticles.com/?expert=Ken_Austin

Consumers choose to sell their legal settlements (also referred to as structured settlements) for many reasons. While many sell their payments to help with college tuition, debt reduction, medical expenses or mortgage payments, most people sell their settlement to gain financial flexibility when personal or financial needs change. "The long payout periods of most structured settlements - typically up to 30 years - work well for many holders, but not all," said Andrew Torre, Chief Compliance Manager for J.G. Wentworth. "Many people find that they need access to their money now to pay for legitimate needs."

However, consumers often are unaware of their options when selling their structured settlements. What price is too low? Which company is reliable? Can I sell just part of my settlement? These are just some of the many questions that arise when considering selling your structured settlement. Torre recommends doing thorough research ahead of time. He offers these 5 tips to consider before selling a structured settlement:

1. Search for specialty finance companies that are able to purchase your structured settlement. Be sure to research their reputation and testimonials - what clients (past and current) say is invaluable.

2. Torre recommends not accepting the first offer to purchase your policy. Why? Browse multiple companies to make sure you're getting the most value for your settlement.

3. Evaluate your current financial standings, and then decide whether you need to sell all or part of your structured settlement.

4. If you can't understand the legal jargon, consult an attorney. Make sure you understand the documents and any tax ramifications that occur with liquidating your structured settlement.

5. Evaluate your financial obligations that will accrue in the future. Re-consider whether selling all or part of your structured settlement will be beneficial for you. Also, consider how accessing your assets will affect your income.

Bonus: Additionally, before you sell your structured settlement, be sure that the company you've chosen addresses all legal ramifications, Torre adds. Prior to purchasing policies, J.G. Wentworth seeks approval from a judge who examines the appropriateness of the transaction, including state legislation.

About the Author
J.G. Wentworth is the nation's oldest, largest and most respected buyer of deferred payments for illiquid financial assets such as structured settlements, annuity payments and life insurance policies. For more information about J.G. Wentworth, visit www.jgwentworth.com.

Should you sell your structured settlement? The answer to this questions is complicated at best because there are so many questions that must be answered before a decision can be made. There are various reasons people choose to sell their structured settlements, but do they always make the correct decision?

The decision to sell should not be made under pressure which often times is the case due to a unforeseen financial emergency or hardship. Making a choice under these circumstances many times leads to further financial problems later. A structured settlement is guaranteed for the life of the contract with payments coming in each month until the contract is fulfilled and is worth far more over the long term; selling early can in some cases cut the value of the settlement in half.

In fact, most of the time it is not a wise decision to sell a structured settlement unless there is no other choice such as emergency cases and even then other avenues should be exhausted before selling.

One valid reason to sell is for other investment purposes. People that have the experience and discipline to invest wisely are often candidates for selling a structured settlement. They realize that they may be able to receive a greater Return On Investment(ROI) by liquidating their settlement and placing the funds in other investment ventures as opposed to letting the money sit for years. However, it should be noted that there is substantial risk involved with any investment and caution should be exercised. A financial planner should be utilized in this case.

Whether you choose to sell your structured settlement or not is a decision only you can make. Expert advice from a financial planner or someone within the financial industry should be sought out before the final decision is made. It is far better to pay a one time consulting fee if services cannot be located for free, rather than living with regret over your decision to sell your structured settlement.

The cash flow notes business is as lucrative as it is wide. By wide mean there are various note instruments for investors to purchase and add to their portfolio and cash streams. One area that has not yet been discussed on this blog is factoring.

Cash is the go juice that makes businesses run! Without a steady cash flow stream, payroll would go unpaid, vendors would be pounding the door down trying to collect, utilities and leasing companies would be shutting off basic services and locking the doors...the business would no longer be a business if the flow of cash ceases. Fortunately, there are options available to business to keep the flow of cash maintained and flowing.

Loans are an option but loans require repayment but are a viable option. Many companies have a source of funding to improve cash flow without getting a loan. This is called factoring. Factoring allows you to sell your accounts receivable to a finance company that specializes in factoring.

Factoring allows a company to sell part or all of it's account receivables to the factoring company. In return the for the accounts receivable, the company receives lump sum cash which can be used to expand, buy new equipment, hire new employees for servicing new clients or projects....the list goes on.

Retail business are not usually prospects for factoring, however businesses that sell to other businesses are candidates for factoring since payments for their services often extend from 30 days and in some cases up to 120 days before receiving payment. For projects that required a large outlay of cash for completion, 90 to 129 days is a long time to wait for payment and this is where factoring is a viable option for business to business companies.

Factoring companies will take over the accounts receivable after checking the credit worthiness of the customers and cut a check to the business. The business is now free to grow, expand or meet payroll, whatever the need may be now that cash flow has been restored.

Factoring is just another part of the lucrative cash flow and cash flow notes business.

As you may already know there are many different types of cash flow notes with the most common being real estate and mortgage notes, business notes, invoice factoring, accounts receivable, structured settlements etc.... The list includes more than sixty various types of notes that can be bought and sold. To recap, cash flow notes are legal and binding contracts between two or more entities. These entities could be financial institution an individual or a corporation. All of which have one common characteristic; one side pays the other a installment payment over a set period of time until the balance of the note is paid.

With real estate notes, the note itself is attached to the mortgage with the real property itself acting as collateral should the borrower default on the payments or loan. With many other types of notes, property can be used to secure the note such as boats, mobile homes, buildings land and airplanes.

Cash flow notes are also available in the business sector with the assets of the business acting as collateral. These notes include factoring and purchase order funding with factoring be the most common of business notes. Selling accounts receivables to a financial institution or investor with the Factor purchasing up to eighty percent of the notes receivable in return the business receives a loan form the funding source.

In this type of transaction, the business receives a loan for whatever the percentage is that is agreed upon between the business and the funding source. The finding source gives the business a loan and collects a transaction fee with the accounts receivable acting as collateral for the loan. Once the business receives the money owed from their clients, the business pays the funding source back. The business received the loan to use as cash flow to run the day to day operations or for other varying reasons which could include expansion of the business or even to meet payroll in lean times.

Purchase order funding is the opposite of Factoring but similar in that a business uses outstanding purchase orders as collateral to receive funding or a loan from a funding source. However these transactions are dependant on the credit worthiness of the customers of the business.

As you can see there are many different forms of notes that can be utilized for attaining cash in a lump sum depending on a varying reasons. We will learn more about this in further post here at Cash Flow Notes.

Late night television is the realm of the infomercial and no doubt most everyone has seen the infomercials touting the big money that can be made in the discount cash flow note business. It is possible to make big money in the cash flow notes business, however it does take time and effort while acquiring the skill to become successful. As in any business, perseverance, discipline and dedication to a well thought out business plan is the key to success in the discount cash flow notes business.

By far the largest obstacle to being successful in the discount note business is locating people willing to sell their notes at a discount since they probably are only holding the note in the first place to get terms within limits that were acceptable to them. Usually in these cases, they preferred to hold the note themselves, agreeing to accept payments over time rather than take a discount on the property.

Only when they reach a point that they need the cash for various reasons do they consider selling the note at a discount. This is where it is very important to make these people aware of the service you provide, especially when they reach a point where they are considering selling the note for a discount. Marketing to a select group of note holders rather than a a wide range is imperative in the discount notes business as this approach allows the note broker or note buyer to build credibility. Marketing to a select group allows the note buyer to build long term relationships based on experience and trust.

The discount note business is highly competitive and is not a get rich quick gimmick as portrayed on late night television. Hard work, building relationships around trust and experience are all attributes of the cash flow notes business lending itself to success for people with drive and focus and a willingness to go the extra mile to provide a trustworthy brand name.

Structured settlements are a financial arrangement oftentimes used when an individual is awarded a large sum of money. This might stem from monetary awards used to compensate a person who has been seriously injured or from lottery jackpot winnings. Structured settlements are oftentimes used in cases involving automobile or workplace injuries, medical malpractice and injuries sustained due to the negligence of another.

There are several types of structured settlements with each being designed to suit the individual's financial needs. Typically, they are offered when damages exceed $10,000. In the case of a minor child, damages must exceed $5,000. Annuity payments are paid to the recipient (Annuitant) over a specific period of time.

Depending on the circumstances and amount of monetary award, Annuitant's might receive payments over the course of 10 to 20 years or for their entire lifetime. Much depends on the type and duration of medical care required, as well as living expenses.

Structured settlements are also arranged to compensate individual's who win jackpot lotteries. For instance, if someone wins $5 million, they can elect to take a lump sum payment or receive the money over a period of years. By accepting a lump sum payment, they will receive a lesser amount than if they elect to accept a structured settlement.

Similar to Certificate of Deposits (CDs) sold by banks, structured settlements are backed by an annuity held by a life insurance company. Annuities are invested to expand the Annuitant's financial portfolio. When annuity payments are paid as a result of injury or negligence, they are tax free. When they are paid for lottery winnings, they might be subject to taxation of both state and federal levels. Additionally, investment proceeds are subject to both state and federal taxes.

When structured settlements are paid for a specific period of time, they are referred to as "Designated Period" or "Period Certain Annuities." The Annuitant receives a set amount of money at a specific time for a certain number of years. Should the Annuitant die before the structured settlement is paid in full, the balance will be paid to a designated beneficiary.

In cases where annuity payments are paid for life, they are referred to as Life Annuity structured settlements. It's important to note that "life" may actually refer to a certain number of years based on the Annuitant's life expectancy. Also known as "Period Certain", this type of structured settlement allows the Annuitant to name a beneficiary. If the recipient dies prior to the number of designated years, the beneficiary will receive the remaining payments.

Lump Sum structured settlements provide a lump sum payment at a future date. This type of arrangement is well-suited for minor children, as it can provide for future educational expenses. Two types of lump sum are available -- "Lump Sum" and "Life Contingent Lump Sum." The first allows transfer of the annuity to a designated beneficiary, while the second does not.

Life Annuities structured settlements pay monthly annuities for life. There are two types of life annuities -- "Life Only" and "Joint Survivor." The first offers no provision for assigning a beneficiary, while the second will pay the beneficiary for the remainder of their life.
Last, but least, is Temporary Life Annuity structured settlement which pays regular payments for a specific number of years. There is no beneficiary provision and the annuity ends when the recipient dies.

Simon Volkov is a private Note Investor who specializes in structured settlements and helps individuals who need to liquidate their assets. Learn more about buying and selling annuity payments at http://www.simonvolkov.com/forms/structured-settlements.html.

Untold numbers of Americans are, in effect, acting as private bankers and lenders. They may have sold homes and provided the buyers with financing, in essence holding mortgages just as a commercial lender would. Instead of paying their mortgages to a bank, the homeowners pay their mortgages to the people from whom they bought their homes. Often, however, these individual private lenders find that their circumstances change, and that they need immediate cash for their real estate notes. Perhaps other joint ventures have gone poorly and they are facing bankruptcy, or maybe they want to make a large purchase and need liquidation options to improve their cash flows.

When this is the case, these private lenders often turn to professionals who act as brokers, finding investors who want to buy discounted notes and trust deeds. Although the investors pay less than face value for the real estate notes, the holders of the notes gain the advantage of being able to liquidate the paper asset and get immediate cash.

Real estate notes aren't the only type of notes that investors buy. They also buy mobile home paper - a promise to the seller that the new mobile home owner will send a monthly payment. Further, investors are interested in virtually any kind of promissory notes, which are basically any kind of IOUs. A note is simply a written promise to pay, along with the length of time the borrower has to pay the note, the interest rate of the note, and the amount of the note.

The broker will act as a go-between for the people who hold annuities, business notes, real estate notes, and other forms of promissory notes and a group of investors who are eager to buy those notes. Ideally, the broker provides premium support for people who need cash for their notes by personally connecting them to the cash sources they need to get the most cash quickly.

Many people who hold notes are relieved to receive cash for them, rather than having to wait for monthly payments year after year. After selling their notes, holders can buy their dream home, consolidate their debts, go on an exotic vacation, purchase a new car, or simply rest easier knowing that they have a cushion of cash should they fall on hard times.

Real estate notes are just the tip of the iceberg when it comes to selling notes for cash. It pays - literally - to explore your options if you have one or more promissory notes in your possession. The paper you hold could, indeed, be cash in the bank.

Chris Robertson is an author of Majon International, one of the worlds MOST popular internet marketing companies on the web. Visit this FinancingInvesting Website and Majon's FinancingInvesting directory.

Real estate notes are probably the most common in the cash flow note business, or probably the most discussed for both business and conversational purposes. Almost everyone that has purchased a house understands the concept of a mortgage and what their responsibilities are for paying the "house note". On the other hand, someone that is holding a note as a private individual may not be aware that it is possible to sell this note to someone else for a lump sum of cash.

Many individuals, when selling property, decide that they can act as the bank or traditional lending institution and provide the financing for the buyer. In doing so the owner acts as the note holder and the buyer pays the owner/note holder in monthly installments until the entire amount is paid off or in this case, sells the real estate note to a private investor or company. Many individuals have income streams set up through these type of notes, collecting a month income from each one. However, circumstances may sometimes require that the note holder sell the note and receive a lump sum of cash for a myriad of reasons including financial upheaval to acquiring cash to expand their cash flow note business.

Selling real estate notes is not difficult but does require research and due diligence. There are perhaps thousands of note brokers and note buyers within the United States that specialize in buying cash flow notes. Just as you would do your research before engaging the services of a real estate agent, insurance agent or financial planner, researching a note broker or buyer is just as important. Asking the note buyer for proof of qualification is recommended along with a transaction history. A reputable note buyer should have no problem providing information the information you require and providing the comfort you desire when selling real estate notes.

Most importantly, all records and language of the transaction should be in writing. If you, as the real estate note seller, do not understand some of the language ask questions. Attain full knowledge of the transaction before agreeing and signing off on your real estate note. As humans, we sometimes have a internal radar that alerts us when a situation may not be in our best interest. More times than not, these internal warnings are correct and should be heeded. If for any reason you are not comfortable with the transaction, express you misgivings to the note broker and call an end to the session until you have time to research your misgivings about the transaction.

Remember, you are selling your real estate note for a reason. Acquiring the best possible price for you note is paramount to both your portfolio and piece of mind. Research is the best possible way to finding the best deal and attaining the cash you desire. Selling real estate notes is not difficult, bit does require some effort on the part of the seller.

Cash flow notes come in many forms and formats but all have one unique characteristic and principle. All notes are a promise to pay. Almost everyone has entered into an agreement to purchase something and pay for it over a set period of time. For example, when someone buys a new car, they will give the seller a down payment and sign a contract(this is a note) to pay for the car in monthly installments at an agreed upon interest rate. Once the buyer has met his obligation of paying for the car over the life of the note, the car is now the property of the buyer.

This example can be applied to anything from furniture to multi-million dollar real estate transactions. Whenever a contract is signed to pay for something over a set period of time, this process creates cash flow notes. These transaction are not always between a buyer and a commercial entity such as a bank or lending institution. Often these transactions take place between a buyer and private individuals, whereas these private individuals act in the same capacity as a bank or lender.

Real estate transactions are probably the most common form of cash flow notes between a buyer and a private individual. Many individuals may own homes they have placed on the market and provide the financing for a buyer rather than a commercial lender. In this case, the buyer would pay the monthly note to the original owner of the house. Once the contract or note is agreed upon by both the buyer and seller, the seller has now created a cash flow stream that pays him every month for the life of the note, or until the mortgage is paid in full.

Real estate is just one example of cash flow streams that can be generated to create a monthly income for private individuals and investors. In following post, we will discuss other contracts and transactions that are also cash flow notes and income streams.

This website/blog uses third-party advertising companies to serve ads when visiting this site. These third parties may collect and use information (but not your name, address, email address, or telephone number) about your visits to this and other websites in order to provide advertisements about goods and services of interest to
you. If you would like more information about this practice and to know your choices about not having this information used by these companies, you can visit Google's Advertising and Privacy page.

If you wish to opt out of Advertising companies tracking and tailoring advertisements to your surfing patterns you may do so at Network Advertising Initiative.

Google uses the Doubleclick DART cookie to serve ads across it's Adsense network and you can get further information regarding the DART cookie at Doubleclick as well as opt out options at Google's Advertising and Privacy center.

Privacy

I respect your privacy and I am committed to safeguarding your privacy while online at this site cash-flow-note.blogspot.com The following discloses how I gather and disseminate information for this Blog.

RSS Feeds and Email Updates

If a user wishes to subscribe to my RSS Feeds or Email Updates (powered by Feedburner), I ask for contact information such as name and email address. Users may opt-out of these communications at any time. Your personal information will never be sold or given to a third party. (You will never be spammed by me - ever)

Log Files and Stats

Like most blogging platforms I use log files, in this case Statcounter. This stores information such as internet protocol (IP) addresses, browser type, internet service provider (ISP), referring, exit and visited pages, platform used, date/time stamp, track user’s movement in the whole, and gather broad demographic information for
aggregate use. IP addresses etc. are not linked to personally identifiable information.

Cookies

A cookie is a piece of data stored on the user’s computer tied to information about the user. This blog doesn't use cookies. However, some of my business partners use cookies on this site (for example - advertisers). I can't access or control these cookies once the advertisers have set them.

Links

This Blog contains links to other sites. Please be aware that I am not responsible for the privacy practices of these other sites. I suggest my users to be aware of this when they leave this blog and to read the privacy statements of each and every site that collects personally identifiable information. This privacy statement applies solely to information collected by this Blog.

Advertisers

I use outside ad companies to display ads on this blog. These ads may contain cookies and are collected by the advertising companies and I do not have access to this information. I work with the following advertising

companies: Google Adsense and Clickbank. Please check the advertisers websites for respective privacy policies.

Contact Information

If you have any questions or concerns please contact Jagger Stone at jaggerstone@gmail.com This privacy policy updated September 2009.