Trying to find cash to stay afloat? You are not by yourself.

Capital Planning INC. is a resolution annuity business that was founded in 1981 in Minneapolis, MN. They possess the distinction of being among the founding members of the National Structured Settlement Trade Association and are among the earliest structured settlement businesses on the marketplace. They also offer various other services to their customers and specialize in purchasing and selling structured settlements. These other services range from medicine to expert testimony.

Selling structured settlements, annuities, lottery returns that were scheduled or alternative continuing payments for cash became very popular during the downturn. But in the event you are still feeling the cash crisis, this approach is a possible alternative.

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How can it work?

When a structured settlement holder calls, Capital Planning Inc. and the team will review the resolution, circumstances, and reasons the applicant wants the cash. They provide the payee an upfront amount to conceding the flow of payments, together with a discount rate should they decide to move forward.

This discount rate, which is usually between 29 percent and 6 percent, is comparable to the interest you’d pay on financing, says Grover Christopher Collins, managing associate at the Collins Law Firm in Nashville, Tennessee. As such, the cheaper the discount rate, the better the deal.


“You can negotiate,” Collins says. “It is not a take-it-or-leave-it proposal, and you can even shop around.”


When you do take an offer, but the organization is going to file a request for change of the structured settlement in court in the state the business is in.

“The judge is the final arbitrator of whether it gets approved or not,” Collins says. Opinions are made based on, among other things, what the individual wants the cash for, what the discount rate is and the standing of the structured settlement firm.

From the time a payee calls to the time they receive cash is often as little as 62 days or Collins says, although precise procedures will change depending on authority.

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David Lewis, general counsel and senior vice president with Stone Street Capital LLC, says few people sell their whole trades at the same time. Payees sell some of their payments, only enough to fulfill their financial wants, and offers from businesses are detailed in all the info they should make an enlightened choice and disclosure statements with discount rates. Lewis says the size of the payments, the payments they would like to sell as well as other variables that go into establishing the payment amount comprise: in which state the payee lives.


“It gets quite difficult and, regrettably, has become more complicated lately. The quantity is a function of several variables, and such variables are somewhat more sensitive now than people might have been (in 2008),” says Lewis.


Lewis expressly points to insurance providers who have seen their credit ratings downgraded. The price of capital and funds has also gone up, and developments through the entire credit markets can have enormous consequences in the structured settlement business. Right after the 2008 banking disaster, worry spread about the exposure of assets and money kept in some specific associations. In spite of the anxiety and poor press, many folks were not attending to cash in their payments in a crash that they wouldn’t be there, Lewis says. A judge also would be unlikely to accept that anxiety as a reason behind selling amounts anyhow.

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