[Maverick]

Client has an Annuity worth $139k and is hoping to borrow between $50-70k. Is this possible? Any recommendations on where to go? Much appreciated and thank you!

[HDF]

No. Also, it is impossible to advise the owner without knowing the surrender fee schedule. If desperate, those fees and inevitable taxes would likely be far less than non-bank funding.

[Cfairbank]

Don't go to term lenders or cash advance companies. Tons of folks specialize in buying structured settlements and annuities: JG Wentworth, Novation, Seneca one, stonestreet, to name a few. Amerimerchant (capify, now part of strategic) used to buy Annuities/SS several years ago, but not sure if still active). However, JG's attempt to wipe out competition by entering into a price war (sound familiar?) after buying the #2 player, peachtree, backfired on them and permanently (in my view) changed the mkt. The pricing war backfired on everyone and JG is now a penny stock and market is shell of former self; but industry continues and the stated discount rates for guaranteed (i.e. Not mortality based; the payments are guaranteed and pass on the heirs after death -- so pmt redirection stays in place) should be between 7% and 14% (14% is probably a pipe dream of past and even 12% would be big upsell -- remember, if non/mortality based, this is effectively a risk free investment since payment is redirected from a (typically AAA-rated) insurance company), so don't get sold into (again, if not mortality based) that credit or payment risk with proper redirection has any material default risk. And if you have cash flow schedule of annuity, you can PV future Cash flows of annuity discounted @ stated rates, and u can see what he/she needs to assign to get required capital.

Again, first step is to understand structure of annuity and if it is mortality based or guaranteed. If non-transferable to heirs, harder and more expensive to sell as real risk exists (now they will look at mortality tables to determine price) to buyer of cash flow stream. But if guaranteed, contact a specialist (like I recommend above). Again, unlike our market, you as a broker fan know range of qualification amt. Note your client can sell any of the receivables she/he wants (long-dated pmts are harder and a waste to factor) to get to capital raise amt, but doesn't have to sell all).

[BB_Cooper]

Maverick- Carl is right, this is not a MCA/Fintech solution. One of our sister companies buys slices of annuities and structured settlements. But careful, the structured settlement world is imploding once again, many of the big names are near 11's. Feel free to reach out-

Robert S Bloink
EVP of ISO Partnerships
Direct: 248-341-9477
Email: bb@cooperasset.com
Web: www.cooperasset.com

[HDF]

My guess was that this business owner was looking to potentially borrow against a fixed or variable annuity (part of a personal investment portfolio) An insurance product.

[Maverick]

Thank you for the thorough replies. Excellent info along with a brief "schooling" in an area that I know nothing about. Good stuff.