Litigation

New Factoring Exchange Announced by SQ

By John Darer

Settlement Quotes, a factoring brokerage out of Rhode Island has just started an online factoring exchange according to a February 5, 2008 press release. A factoring exchange is an auction, where those who have exhausted all other alternatives and have no other alternative but to sell the rights to part of their structured settlement payments for a discounted amount of cash now. The advantage of an auction is that tort victims in this predicament can avoid the likes of Peachtree Settlment Funding and their 19% plus discount rates. The press release states that in some cases discount rates as low as 7% have been possible. Thousands more can be put in the pockets of tort victims instead of factoring companies.

The factoring industry now has two factoring exchange/factoring auction sites, Settlement Quotes and Quote Me A Price.

I've long believed that there is no reason for factoring companies to be charging big bucks to tort victims on AA or AAA rated paper just to satisfy investors in the "deal flow" when there is little to no risk of default.

The President of Settlement Quotes, Andrew Cravenho is a young, highly intelligent and ambitious professional who is contributing in a positive way with a solution to help ease the perceived factoring crisis. Like the better companies in his industry, Cravenho's company makes no mistake that it is a factoring brokerage. Some of the bad boys in the factoring industry could well learn from one of the young turks.

For a complete copy of the press release please click here

Full post as published by Structured Settlements 4Real on February 07, 2008 (boomark / email).