There are a number of timely scenarios where an insurance premium funding solution is the right choice for a business or household. We discuss below.
Need to retain working capital to expand or purchase inventory and equipment
Cash flow is of the upmost importance for all businesses. By breaking down an annual lump sum insurance payment into more manageable monthly repayments, your clients can free up their cash flow to use in other areas of their business.
Offset the cost of living pressures
It’s no secret that rising inflation and interest rates, higher fuel costs and supply chain shortages are being felt by businesses and households across the country. The most recent flooding in Eastern Australia is also tipped to further increase already higher grocery prices, due to the farming community being affected. At this time, it is vital that everyone considers optimising their necessary expenses, like insurance, and utilise instalment payment options to relieve their financial pressures.
Increases to insurance premiums
Reduce the financial stress of premium increases and the risk of underinsurance due to affordability by providing your client an instalment payment option.
Multiple direct debits for insurance program
If your client has multiple insurance policies with different insurers, they may experience several direct debits occurring every month for their insurance program. Help your client simplify their accounting procedures by rolling all their insurance policies into one premium funding loan so they can benefit from one simple payment each month.
Additional benefits of a premium funding solution for a business or household include:
- It’s a simple fixed rate loan that means clients are protected from interest rate fluctuations over the course of a premium funding contract.
- Interest repayments may be tax deductible.
- A premium funding solution will not impact any finance or banking facilities they may already have in place due to the insurance policies acting as security for the loan.
We encourage our brokers to discuss an Arteva premium funding solution with all of their clients so that they can benefit from the assistance it can offer.
