Insurance premiums are most businesses largest annual payable expense – but there is a way to spread the cost. How does it work? Insurance Premium Funding is a simple and effective method of paying for your annual insurance premiums, but on a monthly payment basis. Effectively, the funder pays your premiums to insurers upfront and charges you a monthly amount to repay the loan. This includes a fixed rate credit charge. For example, the prospect of paying an annual insurance premium in one hit can be daunting, particularly if the due date coincides with other bills or large expenses. However, a premium funding option can make life a lot easier and help ensure your cash flow won’t feel the pinch.
Pay by the month and you benefit from:
- Improved cash flow through no large upfront payments
- Additional line of credit without security
- Low, fixed interest rate
- No on-going service fees
- Frees up working capital
- Doesn’t impact existing finance facilities, such as bank overdrafts
- Interest repayments are tax deductible
- Flexible payment options, up to 12 monthly instalments
- Various repayment methods, including direct debit and credit card
To start preserving cash flow whilst still managing all your risk, talk to us today!