Sell Periodic Payments

Written by Jacey Harmon
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Many individuals and businesses are receiving periodic payments from sources like insurance companies, lottery commissions, and clients. Sometimes there is an immediate need for the money that is expected in the future. If this situation presents itself, selling future payments is a good solution to the problem.

To sell future payments you must first obtain bids from buyers. Using the Internet to request bids will speed up the process of selling periodic payments. Once a bid is accepted, the remaining process can take days to weeks to complete. The type of payment you are trying to sell will be a determining factor in how long it takes to complete the sale.

Types of Payments That Can Be Sold

Businesses have the option of selling invoices for immediate cash. Many times this need arises in fast growing companies that require immediate working capital. The quality of the invoice, such as business to business or government invoices will play a role in the ease of selling invoices. Benefits for businesses to selling invoices include reducing debt on the balance sheet, and ability to purchase new equipment without the need of getting a loan from a bank.

Individuals can sell future payments from a variety of different sources. Lucky winners of the lottery that accepted an annuity in place of the lump sum can sell their annuity payments. Individuals who hold a private mortgage note can sell the note to a third party if so desired. Structured settlement payments can be assigned to third parties in exchange for a direct lump sum payment.

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