How They Work
What Are Secondary Market Annuities?
Secondary market annuities may also be referred to as “pre-owned annuities” or “in-force annuities”.
Higher Yields Through Discount Purchases
Often, individuals are awarded annuities as a result of a lawsuit or winning a state lottery. Instead of a large one-time payment, they received a series of payments over time
Are Secondary Market Annuities Safe?
What is Factoring?
The sale of receivables transfers ownership of the receivables to the factor, which means the factor obtains all the rights and risks associated with them. Accordingly, the factor obtains the right to receive the payments made by the debtor for the invoice amount and must bear the loss if the debtor does not pay the invoice amount. The factor’s profit is the difference between the price it paid for the invoice and the money received from the debtor, less the amount lost due to non-payment.
Factoring is used by businesses and individuals to sell accounts receivable (invoices) to third parties (called factors) at a discount – in exchange for an immediate lump sum payment with which to finance continued business. It is not a loan, it is the purchase of a financial asset (the receivable). Factoring involves three parties: