Structured settlements provide financial security for individuals who receive long-term payouts from legal settlements, lottery winnings, or insurance annuities. However, some recipients may prefer a lump-sum payment instead of periodic installments. This is where structured settlement buyers come into play—companies that purchase future payment streams in exchange for an immediate cash payout.

Not all buyers operate the same way. Some offer competitive rates, while others employ aggressive sales tactics with hidden fees. To navigate this complex industry, here are 10 critical things to know about structured settlement buyers, including key players and what sets them apart.

1. Understanding the Role of Structured Settlement Buyers

Structured settlement buyers (also called factoring companies) specialize in purchasing future payments at a discount. They profit by acquiring these payment streams at a reduced rate and collecting the full value over time.

Key Differentiator:

• Some buyers focus on high-value settlements, while others target smaller, more frequent payments.

• Reputable firms adhere to state and federal regulations, while less scrupulous ones may push for quick, unfavorable deals.

2. Top Structured Settlement Buyers in the Industry

Several major companies dominate the market, each with distinct advantages and drawbacks.

A. JG Wentworth

• Known for: Aggressive marketing ("It's your money! Use it when YOU need it!")

• Differentiator: One of the oldest and most recognizable brands, but often criticized for lower payouts due to high overhead costs.

B. Peachtree Financial Solutions

• Known for: Quick funding and a streamlined process.

• Differentiator: Offers competitive rates for larger settlements but may charge higher fees for smaller transactions.

C. SenecaOne Finance

• Known for: Personalized service and flexible terms.

• Differentiator: Works closely with sellers to structure deals that fit their needs, rather than pushing a one-size-fits-all approach.

D. Stone Street Capital

• Known for: High-volume purchasing and competitive offers.

• Differentiator: Often provides more aggressive bids for large, long-term payment streams.

E. Rapid Annuity & Settlement Funding

• Known for: Fast turnarounds (sometimes within 24-48 hours).

• Differentiator: Focuses on urgency, which can be beneficial for sellers in immediate need but may result in lower offers.

3. Legal & Regulatory Requirements

Structured settlement transfers are heavily regulated under the Structured Settlement Protection Act (SSPA) and state laws.

Key Differentiator:

• Reputable buyers ensure court approval and full transparency.

• Less ethical firms may downplay legal requirements, putting sellers at risk of invalid transactions.

4. Discount Rates & Hidden Fees

Buyers apply a discount rate (typically between 8% and 18%) to determine the lump-sum offer.

Key Differentiator:

• JG Wentworth and Peachtree may have higher overhead, leading to steeper discounts.

• Smaller firms like SenecaOne or Stone Street might offer better rates due to lower operational costs.

5. Speed of Funding

Some buyers promise "cash within 24 hours", but this often comes at a cost.

Key Differentiator:

• Rapid Annuity Funding specializes in quick payouts but may reduce offers for expedited service.

• Peachtree and Stone Street balance speed with competitive pricing.

6. Customer Service & Transparency

Not all buyers are transparent about fees or long-term consequences.

Key Differentiator:

• JG Wentworth has faced lawsuits over misleading advertising.

• SenecaOne and Stone Street tend to have better reputations for clear communication.

7. Flexibility in Partial vs. Full Buyouts

Some buyers only purchase entire payment streams, while others allow partial sales.

Key Differentiator:

• Peachtree and SenecaOne often accommodate partial buyouts.

• JG Wentworth typically pushes for full purchases.

8. Impact on Long-Term Financial Health

Selling a structured settlement can have tax implications and reduce long-term security.

Key Differentiator:

• Ethical buyers (like SenecaOne) encourage sellers to consult financial advisors.

• Less reputable firms may gloss over risks to close deals quickly.

9. Online vs. Broker-Based Buyers

• Online platforms (e.g., JG Wentworth, Peachtree) offer convenience but less personalized service.

• Broker-assisted firms (e.g., Stone Street, SenecaOne) provide tailored solutions but may take longer.

10. Alternatives to Selling

Before committing, consider:

• Loan options (if liquidity is the issue).

• Partial sales (to retain some future payments).

• Financial counseling (to assess long-term impact).

Key Differentiator:
The best buyers (like SenecaOne and Stone Street) will discuss alternatives rather than pushing for an immediate sale.

Final Thoughts

Choosing the right structured settlement buyer requires research. While JG Wentworth and Peachtree are well-known, they may not always offer the best terms. SenecaOne, Stone Street, and Rapid Annuity provide different advantages depending on urgency, flexibility, and payout needs.

Before selling, always:
✔ Compare multiple offers.
✔ Verify the buyer's reputation.
✔ Ensure court approval is part of the process.
✔ Consult a financial advisor.