by Structured Settlement Watchdog
What is a Sovereign?
According to the Online Dictionary , a “Sovereign” is:
“1. One that exercises supreme, permanent authority, especially in a nation or other governmental unit, as: 
a. A king, queen, or other noble person who serves as chief of state; a ruler or monarch.
b. A national governing council or committee.
2. A nation that governs territory outside its borders.
3. A gold coin formerly used in Great Britain.”
Just because David Springer’s factoring company, Sovereign Funding Group, slapped on the name ” Sovereign” doesn’t mean any of the characteristics of a King inure to the benefit of David Springer or Sovereign Funding Group.
In my opinion the following soft sales pitch from Sovereign Funding shows a subtle sense of sleaze that does not befit a true sovereign. Some of the “hot buttons” that Sovereign seems intent on pushing are more like showing an “addict” how they can avoid “staying sober”.
“People need or want access to the cash they are entitled to from structured settlements and class action rewards. Sometimes they have a serious need to pay off credit cards, finance long-term medical care, or to settle a divorce. Other times, they simple (sic.) have a desire to purchase a dream home, take a vacation, buy a new car or boat, finance a wedding, or start a business, for example. In some cases, people want access to their cash just for peace of mind. They no longer want to worry about liquidity issues, collection hassles, or the financial strength of the person who owes the debt.” Sovereign Funding website 11/23/2007
The high cost and time delay to get the cash means that factoring should be the funding source of last resort.
AND I don’t mean vacation “resort” either! YOU SHOULD NOT USE STRUCTURED SETTLEMENT FACTORING FOR THE PURCHASE OF A NEW BOAT, If you qualify, a boat loan will cost far less than the factoring. Speak to your accountant. If you don’t have the credit then you should AVOID trading an income producing asset with a fair rate of return for a depreciating asset like a boat or a car.
Consider the fact that by factoring your structured settlement for this purpose you would be hosed twice. First by your own decision to trade away financial security. Second, agreeing to take a discounted lump sum that you then put into an asset (investment) that is guaranteed to decrease in value.
DO YOU LIKE BEING HOSED? When it comes to a boat you also need to consider that it’s about $4 a gallon now for a gallon of boat gas. Then there’s the maintenance and dry docking if you live in the Northern part of the United States. If you think this through there are other ideas. Join a boat club! Some boat clubs ( a boat club is different than a “yacht club”) allow you to take boats from their “fleet” as part of your membership. An annual fee may allow you and/or your family to have fun without breaking the bank, or your structured settlement. Many boat clubs also rent sailboats, rowing sculls, and have swimming pools and snack bars…a “yacht club lite” if you will.
Now Sovereign Funding is just trying to win your business. But winning your business with bogus financial ideas like described above is unethical in my opinion. It’s as bad as selling life insurance as a savings plan and not calling it life insurance. I highly doubt that the principals at Sovereign Funding who must account to the suppliers of the cash for their “cash now deals” are ignorant. Other second, third and fourth tier factoring companies who have demonstrated similar predatory advertising practices include Woodbridge Investments and 123 “Lump Dumb”.
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