 A structured settlement factoring transaction is a means to raise liquidity where there is no other viable means, via the transfer of structured settlement payment rights, for items such as unforeseen medical expenses, the need for improved housing or transportation, education expenses and the like, or in a situation where the individual has simply spent all his or her cash.To meet this need, the structured settlement recipient may involve the sale (or, less commonly, the encumbrance) of all or part of certain future periodic payments for a lump sum.Generally such lump sums are discounted.