The short version: you cannot borrow against a structured settlement, and no legitimate company offers "structured settlement loans." What actually exists is a court-approved sale of some or all of your future payments for a lump sum. Companies advertising "loans" are almost always describing that sale.
Why you cannot borrow against your settlement
Structured settlement agreements contain anti-assignment provisions, and the tax rules that make your payments tax-free depend on you not having control of the underlying annuity. That means a bank cannot take your payment stream as collateral the way it takes a house or a car. No collateral, no loan. Anyone who tells you otherwise is either misusing the word or misleading you.
What you can actually do
- Sell some or all of your future payments. A judge reviews the sale under your state's Structured Settlement Protection Act and must find it in your best interest. You get a lump sum; you are not in debt to anyone, because it is a sale, not a loan. This is what we do, directly, with the discount rate stated in writing.
- A cash advance while your sale is in process.* Not a loan either: it is an early portion of your purchase price once you have signed, recovered from the lump sum at funding. No interest, no APR, no repayment schedule.
- Keep your payments and borrow elsewhere. If what you really need is a small, short-term amount, a personal loan from a bank or credit union against your income (not your settlement) may cost you less than selling payments. We say that plainly because a seller who trusts us is worth more than a transaction that should not happen.
How to spot the misleading ads
Watch for "settlement loans," "borrow against your settlement," or "settlement loans same day." Ask one question: "Is this a loan I repay, or are you buying my payments?" If they are buying your payments, compare them like a buyer: demand the discount rate in writing, then bring us the quote. We beat any qualifying written offer or pay you $1,000.**
* Cash advance availability, amounts, and timeframes vary based on individual circumstances (typically up to $1,000, within 24 hours of qualifying, where offered). Cash advances are offered and made solely by Genex Capital Corporation at its sole discretion and are subject to its underwriting requirements, including: (1) execution and return of a payment purchase contract and all documents required to begin the purchase process; (2) confirmation that you receive periodic settlement payments; (3) a determination that you may enter into an agreement to sell all or a portion of those payments; (4) a determination that the purchase transaction is likely to receive court approval under applicable state law; and (5) satisfaction of underwriting guidelines. Available only to U.S. citizens or permanent legal residents who have reached the age of majority in their state of residence.
** Genex Capital Corporation will pay you $1,000 if it cannot beat a qualifying offer from another payment purchasing company. To qualify: (1) you must provide a written quote from another payment purchasing company, signed by an authorized representative and dated within three business days of the date you submit it ("Qualifying Quote"); (2) if Genex Capital is unable to beat the Qualifying Quote's purchase price, you will receive written notice within three business days of receipt; and (3) the $1,000 is due and payable upon written confirmation that the transaction funded at the quoted purchase price, and that funding must occur within ninety days after you receive written notice that Genex Capital cannot beat the Qualifying Quote. Quotes issued under an annuity issuer's own buyback or hardship program (including the Berkshire Hathaway Hardship Exchange Program) are not Qualifying Quotes. Limit one offer per customer. Not available where prohibited.
This website is operated by Genex Capital Corporation. All offers to purchase settlement payments, all purchases, and all cash advances are made by Genex Capital Corporation and its affiliated companies (A+ BBB rating). We are not a lender or a law firm, and we do not provide legal, tax, or financial advice; consult independent professionals before selling. Every transfer of settlement payment rights requires approval by a judge under applicable state law, and no transaction is final without that approval. Since 2003, $1.2 billion in payments transacted, 50,000+ clients served, and 95% approval success are figures reported by Genex Capital Corporation.
