Rhonda Bentzen who previously owned Bentzen Structured Settlements Incorporated, 1 of only 3 approved structure firms in the province of the British Columbia was previously a structured settlement broker. She is now working the factoring side of the structured settlement industry through her new company Bentzen Funding Solutions. Ms. Bentzen receives most of her clients through referrals from structured settlement brokers.
I recently read the post Factoring Brokers written by Ms. Bentzen. There are several points I do not agree with and am very confused on where she is getting her information from.
"send out proposals to multiple funding companies and get the best rates. The catch is, it just doesn’t work that way. Ultimately, the broker just sends out the request to whoever will even take the time to look at it, let alone quote it."
Who are you referring to when you state this? Why would a factoring company not want to quote a structured settlement factoring transaction? If a factoring broker is doing their job, they should acquire multiple quotes from different types of funding sources.
"Like many financial businesses, the larger companies won’t give the brokers the time of day unless they fund a significant number of cases through them."
If a larger company does not want to do business with you, why are you worried about it? They are missing out, not the annuitant. There are more opportunities from smaller companies that use private investors for their funding source. Factoring companies that are privately funded allows them to purchase structures at a lower rate than most other factoring companies (7%- 8% discount rate). At Settlement Quotes we use privately funded sources and our clients are blown away by our rates.
We recently completed a deal: 4 annual payments of $30k for $104,000 to the client. This was not done through a large company.
Ms. Bentzen provides a great service to settlement professionals across the country and I am sure she provides a great service to her clients. I am perplexed why she wrote this post.