There is a structured settlement factoring transaction. But to understand what a kind of factoring this is you have to realize what a structured settlement is. So, a financial arrangement setup in most cases from a lawsuit settlement is called a structured settlement. For this reason they receive periodic payments, resulting from an annuity to cover medical costs, damages, and losses. And this differs from a lump sum payment in that the prosecutor receives a set amount each month for a specific amount of time. But this payment is tax free, besides, it is a great source of fixed income.
 As for a factoring transaction, it is very alike to accounts receivable financing. Nevertheless, factoring is a form of commercial finance where a business sells its invoices at a discounted rate. By the way, factoring is paid back usually in 30 or 90 day terms. That's why, it is alike to a commercial loan. But why wouldn't a company use a traditional bank loan? This is because factoring has become main stream finance for commercial entities, which in turn develops into relationships.
With this it is possible for a business to focus on its specialty. And the factoring company can worry about the bills.
When the annuity owner sells a portion or all of the periodic payments to a factoring company for a lump sum payment, this will be a structured settlement factoring. But this can occur for many reasons. And it usually occurs when there is a financial burden in the house hold. These future payments are not actually sold to the factoring company but are transferred.
Being a beneficiary to those payments, the annuity owner does not own the payments. Thus, as the beneficiary, this individual has the right to transfer those payments to the factoring company for a discounted rate.
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