What is Insurance Premium Funding?
Insurance Premium Funding (IPF) involves the lending of funds, to a person or company, to cover the cost of an insurance premium or multiple premiums that may be due.
Insurance is a necessity for every well-managed business but having to pay insurance premiums up front can take a toll on your cash flow.
Insurance Premium funding enables businesses to pay their insurance premiums in easy to manage monthly instalments. We at Loanbrite help make insurance cover more affordable for your business and help free up business cash flow for the investment of your operations.
Insurance Premium finance for commercial insurance helps you adequately protect your businesses by allowing business owners to spread the costs of annual insurance premiums on a monthly basis.
The Insurance Premium Finance arrangement may last from 6 months, to the life of the policy. Loanbrite organises the funding for your Insurance Premium and then has the Insurance Premium Finance company pay 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 option to avoid large lump sum payments such as insurance can help free up your business cash flow for other use.
How Does Premium Funding work?
Your insurance premiums are paid on your behalf by the due date to the nominated insurers. You then pay the total premium in easy to manage monthly instalments. The funding option can be extended to most types of policies, including commercial & domestic insurance policies such as vehicle insurance and public indemnity insurance for your business.
Benefits of Insurance Premium Funding include:
- Flexible monthly instalments
- Able to pay multiple insurance policies can be attached to a single premium contract with one easy monthly payment usually ranging from 6 to 12 months
- Interest repayments may be tax deductible for businesses
- Free up your cash flow to use elsewhere in your business
- Eliminate the requirement for a large up-front payment for your premiums freeing up cash flow.
- The benefit of not having to provide security against the finance
- No loan service or monthly fees
- Competitive terms and fixed rates available
Take control of your cash flow and get in contact with Loanbrite today.
