Litigation

The above question was Binged today and the answer is that it the discount rates vary widely by comapny, by type of cash flow and whether or not the discount rate includes legal fees and other charges or costs to complete the transaction.

Rates could vary from 7-19%

Make you measure using the effective discount rate (considers all charges and fees)

Example 1

Say you wanted to sell $100,000 lump sum due on January 5, 2012

At 19.2% effective discount rate the cash lump sum  would be around $78,000

At 8.1% effective discount rate , the cash lump sum would be around $90,000

Example 2

Say you wanted to sell $100,000 lump sum due on January 5, 2012

At 18.27% effective discount rate the cash lump sum  would be around $55,000

At 9.14% effective discount rate , the cash lump sum would be around $78,500

Important tips

1. Shop around. Those who fail to shop are likely to get ALOT less than they should.
2. If you  think you are getting a good deal by going to Peachtree Settlement Funding, think again. The company operates in a world of high discount rates. If you consider yourself a smart shopper then don't waste your time going to Peachtree. Peachtree is "pooptree" when it comes to effective discount rates! Stay out of the "splatter zone"!


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3. To stay out of the Peachtree "splatter zone" consider using the FREE structured settlement factoring discount rate calculator. If you aren't sure how to use it please contact this author, John Darer.