Insurance Premium Funding involves the lending of funds, to a person or company, to cover the cost of an insurance premium.
Why use Insurance Premium Funding?
With Insurance being one of the largest annual expenses of most businesses it makes sense to spread the cost by making monthly payments.
This type of funding provides a simple and effective method of spreading the cost of annual insurance premiums on a monthly basis.
The “cash flow” advantages of funding your Insurance Premiums are that you obtain an Additional Line of Credit. As a result, you preserve working capital for investment in your business.
We are able to provide loans for Commercial Insurance coverage as an alternative and flexible way to pay for your insurance.
How does it work?
The arrangement may last from one year to the life of the policy.
- We organize funding for your Insurance Premium.
- The Insurance Premium Finance company pays the insurance premium on your behalf.
- They will then bill you or your company, usually in monthly installments, for the cost of the agreed funding amount.
The interest charge is fixed for the term. As a result, you are protected against any adverse movements in interest rates. And in addition you receive a tax deduction for your business.
Insurance Premium Funding Benefits:
- Firstly, the requirement for a large up-front payment to an insurance company is eliminated
- It also allows clients to obtain needed coverage without liquidating other assets
- You can attach multiple insurance policies to a single premium finance contract. Therefore, a single payment plan covers all insurance coverage
- Monthly direct debit payment plan
- No application or account management fees
- Certainly, interest charged is tax deductible for businesses
Commercial Point Finance has the experience to source quality cost effective solutions from a number of specialized lenders.
In conclusion, take away the cashflow pressure exerted by large insurance premium payments. Consequently, you and your business can capitalize on opportunities and focus on growing your business.
Contact Us for the best Insurance Premium Funding deals today.
Check out our Commercial Finance Page for all our commercial finance options.
Call Now to discuss – 02 9453 0300.