In this continuing series on common complaints, problems and misconceptions with structured settlement factoring, Part 3 addresses "discount rates". In short, discount rates are numbers expressed as a percentage used to calculate net present value of future cash flows (Investopedia).
These are likened to percentage rates used to calculate loans (although factoring transactions are usually assignments or sales, not loans).
Matt Bracy, General Counsel of Settlement Capital Corporation, discussed discount rates, the "real" value of payments, and how discount rates are calculated with Scott Drake of the Legal Broadcast Network in this two segment video interview.
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