The economic down turn affects people from all walks of life. More and more bills are getting unpaid because of this dire situation. Now, what if you are in grave need of cash and do not have a very good credit score or an asset to help you secure a loan? All you’ve got is the structured settlement payments that you are receiving on a regular basis. You know that you will be able to get through this tough time if only you have enough cash at hand to help you get started.

Structured settlement loans can save you. A claimant can obtain cash sooner than the court-ordered annuity payments can even begin. These are loans extended to the recipient of such settlement to advance the whole amount for a fee. Considering the almost risk-free scenario for this type of loan, there are several financial institutions that offer quick lump sum cash to the recipient. The loan’s monthly payment is covered by the structured fund.

Unlike all other types of loans, wherein the negotiation is just between the lender and the borrower, the structured settlement loan needs to obtain approval from the court before it could be processed. This is why approval for this kind of loan takes longer. Approval process could take up to 90 days before the fund is released to the borrower.

Remaining structured settlement payments can also be used to obtain a loan. It’s either the lender will buy all remaining payments, a percentage of the payments or a specific number of payments. And just like any other type of loans, the bank will charge a fee for handling the loan.

The amount of cash that a borrower can receive from his structured settlements depends on a lot of things — the financial stability of the insurance company making the payments, the amount of the judgement, and how long the periodic payments will last.

Structured settlement loans can be beneficial to those who may not need a long term payment. Example of them are, elders who are more likely to be outlived by the periodic payments and those that are still able to maintain gainful employment.