Vector Financial Solutions

Transaction flow is sourced primarily through relationships with plaintiff attorneys, financial advisors, and direct-to-consumer marketing. Individuals who have received a structured settlement often seek liquidity and are introduced to factoring firms by the attorneys who handled their original case. Because each transfer requires court approval, the sourcing model is deeply integrated with the legal community rather than institutional investment networks. Competitors in this space also rely heavily on online lead generation targeting settlement recipients.

Pricing applies a discount rate to the future cash flows, reflecting the time value of money over the payment schedule, the credit risk of the annuity issuer or obligor, and the firm's required return. The underlying obligors — usually A-rated or better insurance companies — provide high certainty of payment, allowing discount rates that are lower than those applied in distressed consumer credit but higher than institutional fixed-income yields. The exact pricing methodology and current discount rates are proprietary and not publicly disclosed.