Premium Funding provides EBM clients with the opportunity to spread the payment of their insurance premiums over regular instalments rather than pay in one lump sum (subject to funders acceptance). This option can apply to both new business and renewals and the funded premiums are then paid on a monthly basis.
Premium Funding is a convenient option to improve cash flow and free up working capital for income-generating opportunities, without affecting existing finance arrangements.
Benefits of Premium Funding include:
- Working capital freed up for income-generating opportunities
- Fixed interest rate
- Tax deductible
- The policy itself is the security – no additional security is required
- Flexible repayment options
How does it work?
Once your application has been approved your Premium Funder will pay your insurance premium by the due date, you then simply repay in monthly instalments by the agreed method of payment.
To obtain a quote simply ask your broker who can provide you with the payment details as well as the necessary paperwork.