Insurance premiums are one of business’s biggest annual costs – 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 premium-funder pays your premiums to insurers upfront and charges you a monthly amount to repay the annual premium. This includes a fixed rate credit charge as this is a loan.
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 be an effective way to not hit a company’s cashflow too hard.
Paying insurance premiums by the month can assist your business in:
- 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