Premium Funding Options for Business Insurance

 

Just as you invest in your company, it's important you insure it with appropriate insurance policies. However, paying annual insurance premiums in advance is usually a major strain on your cash flow. Premium funding enters the picture, providing you with a means to better manage your insurance expenses.

 

Premium funding is a financial option allowing you to split your yearly insurance premiums into smaller, more manageable payments. The plan often permits you to pay monthly, making it simpler for you to budget your expenses without sacrificing your cash flow.

 

Obtaining premium funding is easy. Your Insurance Broker can arrange to have a quote from a premium funding provider, or Funder, for your consideration. On acceptance of the quote, your Funder pays your annual premiums in advance for you, while you repay the agreed sum on a regular basis. You won't experience the hassle of making a substantial lump-sum payment, so financial planning is less stressful.

One of the benefits of premium funding is its rapidity and ease of arrangement. Most Funders have easy-to-use online websites whereby you are able to see and accept quotations within minutes. Or, if you wish, you can appoint your Insurance Broker to accept on your behalf, further streamlining your experience.

 

Cash flow is vital to any business, big or small. By structuring your insurance payments, you create liquidity that can be applied elsewhere in your business, making you more operationally flexible. This can provide you with the ability to place investment in growth potential or covering unexpected costs as and when they arise with ease.

 

Premium funding is usually in the form of a straightforward fixed-interest loan. This implies your payments are fixed for the duration of the loan, protecting you from surprise increases in interest rates. You'll always have clear information on what your payments will be, making financial planning easier.

When you look at premium funding, you will be glad to hear no further security is needed aside from the insurance policies you're financing. The arrangement ensures your current financial facilities are not affected, providing you with comfort while keeping your finances in check.

 

In addition, the interest on your premium financing can be tax deductible as a business cost. Always check with your accountant to make sure you are utilizing available deductions driving profit to your bottom line.

 

Flexibility is yet another alluring aspect of premium funding. The majority of Funders allow you to pick from a list of repayment periods, enabling you to choose terms fitting your business requirement. You may also repay your loan using any of the provided methods, be it Direct Debit, Debit Card, or Credit Card, keeping you at ease while fulfilling your commitments.

 

If you have more than one insurance policy, premium funding can be especially useful. You can consolidate all your insurance premiums into a single funding agreement, with one monthly payment rather than dealing with multiple due dates.

 

When you're approaching your insurance renewal, talk to your Insurance Broker about the possibility of premium funding. It may be a valuable tactic to assist in controlling your business expenses while ensuring you're properly covered.