Settlement Funding
How It Works
We've all seen the ads on TV for\settlement funding companies. Peachtree and J.G.Wentworthare probably the most viewed.
Settlement Funding is where you get a lump sum of cash in exchangefor the future of your settlement (i.e. court judgment settlement set outover time).
The Present Value of your settlement is calculated. Based on this, the settlementcompany will offer you a percentage of what the present value is.
For an explanation of Present Value check out
Money Chimpstodo: insert Present Value Calculator Here
Take a simple example:
You are owed $500. You have been paid 400 so far. The remaining 100 issupposed to be paid out over the next 2 years at 0% interest.
