Understanding what a structured settlement is and selling for a lump sum
A structured settlement is a court awarded compensation stemming from a lawsuit. It establishes payments to be made over a fixed period of time rather than one lump sum. These payments can be paid weekly, biweekly, monthly, annually, and semi-annually. It all depends on how the settlement was set up.
There are many reasons for a structured settlement to be awarded a person but here are a few of the main reasons:
- Wrongful death cases where survivors need income
- Workers compensation cases
- Guardianship cases involving minors or child support cases
- People with permanent or temporary disabilities
- Lead poisoning
People can sell all or part of their structured settlement payments to companies like us at Rescue Capital for a lump sum of cash. Reasons for needing a lump sum vary but the most common reasons are:
- Paying off a mortgage
- Paying off credit card debt
- Paying taxes
- Starting a business
- Paying off medical expenses or bills
- Household repairs
- Buying a car
The reasons for a lump sum vary from person to person just as their needs in life change. As debts and bills accumulate over time, the amount received from an annuity, when it comes due, may no longer be large enough to handle the current financial needs.
Waiting for future payments can drive you further into debt. That’s why we, Rescue Capital, are here to help. We purchase future payments in exchange for a lump sum paid to you. You have the ability to obtain all of the money you need to provide security for yourself and your loved ones. Call us at Rescue Capital at 866.688.3532 for a free no-obligation quote
5 Major sources of business capital financing
Sufficient supply of funds is the key to the success of your business. There are two broad categories of capital requirements for your business - fixed capital requirement and working capital requirement. Under fixed capital expenses, there are machinery, plant and other fixed costs that you have to incur. On the other hand, working capital expenses include those expenses which you have to incur on a day to day basis. Anyways, all businesses are required to finance these two types of expenses. There can be long term as well as medium and short term sources of capital financing. Here we discuss about some sources of capital financing.
Share capital or equity capital
Share capital or the equity capital is the capital stock of a business generated from trading the stocks of the company in the share market. Unlike the debt capital, equity capital is not repaid to the investors. Equity capital is generated by the company by purchasing the ordinary shares or the common stocks of the company. The value of equity capital is determined by subtracting the current market value of everything owned by the company from the liabilities of the company. The equity capital is shown as the stockholders' equity or owners' equity in the balance sheet of the company.
Debt capital
Another important source of capital financing is debt capital. This particular type of capital is infused by the other parties under the condition that the money will be paid back within a predetermined future date, along with interest. In case of debt capital, bondholders, banks or wealthy individuals come to an agreement to borrow money to you in exchange of interest rate. You as the owner of the business can use the money to expand your business. Debt capital is considered as an excellent way to get funds as it is very easy to obtain this kind of capital. The profit of the owner is obtained by subtracting the cost of borrowing from the rate of return on the capital.
Mortgage loan (Home equity loan)
Another way to obtain capital is through taking out a home mortgage loan. Mortgage loans are secured loans and these loans are taken out against some real properties. The rate of interest associated with secured mortgage loans is comparatively less than the rate of interest associated with unsecured loans. You can use the mortgage loan proceeds for business expansion purposes.
Retained profit
You as the owner of the business can use retained profits to expand your business. Retained profits are nothing but the part of the net income earned by you after paying dividends to the investors. You can reinvest a part of the retained earning for developing your business.
Venture capital
Venture capital is for the early stage businesses which have high growth potential. If you have innovative business ideas with a lot of opportunities, then you can seek for venture capital. The venture capitalists are now playing vital role in modern growth-oriented business.
Apart from these, there are many other sources of business capital financing. As the owner of a business unit, you can opt for one or more sources of business capital.
About Guest Blogger
Kavin Matthews - Kavin is a prolific business writer, with expertise in personal debt issues. To know more on personal debt related aspects, visit https://twitter.com/debtcc
Our Favorite Things-December 16, 2011
With the end of the year approaching many people are starting to make resolutions. Some of which include getting out of debt. Instead of making a resolution, I would make improving your finances a priority for 2012. To help you get started here is a list of our favorite financial blogs.
- Rescue Capital – Our blog contains a little bit of everything from budgeting to selling your future payments.
- Get Rich Slowly – This blog provides practical advice on saving money, getting out of debt and investing.
- Kiplinger – Gives advice on personal finance and how to secure your future.
- MSN Money – Saving, investing, retiring and getting out of debt advice.
- Smart Money – Advice on how to save, spend, borrow, plan and more.
- Learn Vest – How to live frugally.
- Savvy Sugar – Advice on money, careers and travel from a woman’s point of view.
- The Consumerist – Gives independent advice on scams, deals, issues, recalls and more allowing to readers to make informed buying decisions.
- Daily Finance – Money and finance tips galore.
- Bankrate – Bankrate publishes personal finance tips as well as rates on mortgages, credit cards, savings accounts and more.
Getting cash for the holidays
Even before Halloween came and went, retailers started working on Thanksgiving, Hanukah and Christmas displays. Today alone, my mailbox contained at least 5 Christmas themed catalogs. As much as I hate to admit it, the holidays are just around the corner; 17 days until Thanksgiving and 47 shopping days until Christmas. For many, this time of year is a time for making plans with family and friends. For others it is a brutal reminder that things are a little tight.
While I don’t think it is a wise decision to sell illiquid assets to carelessly spend the money on the latest toy or trinket, I do think certain situations call for these transactions. For example, your car is broken down, your credit cards are maxed out or you have to decide whether to pay your electric bill or eat this week. For individuals who are struggling financially, it makes sense to sell your future payments for a cash lump sum.
Maybe your car is fine but your home needs repairs or you can’t afford to pay your mortgage. You might want to consider selling a portion of your future annuity payments to get the cash you need to get back on your feet. You should also ask about how to defer selling your payments for a couple of years.
Perhaps you are in need of cash but do not have an annuity or periodic payments from a structured settlement, what can you do? If you have any type of periodic payments such as a pension, cell tower lease, mortgage note, divorce settlement, royalties, etc., we may be able to help you. Just give us a call at 866.688.3532 so we can evaluate your asset as well as provide you with a free, no-obligation quote.
We understand that selling your future payments or a life insurance policy for cash isn’t for everyone. Research a few companies with the Better Business Bureau, learn about the process, get a few quotes, think it over and decide if this is the best solution for you. If you do decide to sell, you owe it to yourself to call Rescue Capital. Rescue Capital will be by your side throughout the process to ensure that things go smoothly. Our expert staff has more than 30 years combined industry experience and we offer some of the best rates around.
Topics
Archives
Links
Follow us on
