Premium Funding – Pay your Business Insurance by the Month

Insurance doesn’t need to be a lump sum expense. An insurance premium funding solution breaks down annual insurance premiums so that businesses and households alike can enjoy more manageable monthly instalments.

All business owners know that cash flow is the key to survival of any business. Without sufficient cash flow it becomes very difficult for even the most profitable business to avoid financial disaster, or at the very least achieve its true potential. Insurance premium funding is a finance solution that allows businesses and individuals to break down their annual insurance premiums into more manageable repayments, most commonly monthly.

When economic times are challenging, business owners should be seeking ways to improve their cash flow and preserve their working capital at every opportunity. One of the easiest ways to do this is by paying your business insurance by the month through a funding facility arranged by your insurance broker. This means your insurance payments can be a cashflow positive tool. Read more about some of the benefits here.

Funding companies lend you the amount required to pay your insurance premium and pay it on your behalf. You then repay the funding company in monthly instalments over a period of typically 10 months.

The funding company charges a flat interest rate on the amount of the premium that is fixed for the term of the loan. And as the loan is secured by the insurance policy in most cases, no security is required. This ensures that applications are simple and processed quickly – usually within 24 hours.

The interest charge is usually tax deductible as a business expense. 

Want to know more about preserving your business cash flow and paying your Business Insurance with Premium Funding? Contact Us today to find out how we can help you.