Insurance doesn't have to be a lump sum expense.
As the age-old saying goes – Cash is king. Maintaining positive cash flow is what keeps businesses afloat as they must have cash on hand to meet their financial commitments, cover unexpected costs and invest in their future.
Even profitable businesses can fail if cash flow is not managed properly. In fact, more businesses fail due to lack of cash flow than due to lack of profit.
Large lump sum bills (like insurance), seasonal revenue downturns and slow paying clients are all examples of factors that can have a negative impact on cash flow if not planned for and managed correctly. The supply-chain issues being felt around the world due to the COVID pandemic are also a current threat to cash flow for many businesses as margins are decreasing due to increased transportation costs, ultimately resulting in lower profits.
Thankfully there are many tools and ways available to businesses that help improve cash flow.
How insurance premium funding can assist with cash flow
Having the right insurances in place can be costly and are often a significant expense. However, businesses don’t have to pay the premiums upfront and take the negative hit they can have on their cash flow.
Insurance premium funding allows businesses of all shapes and sizes to break down lump sum insurance premiums into more manageable monthly instalments. By spreading the cost out over the course the year, the immediate negative impact the cost of insurance has on a business’ cash flow can instead be levelled out.
And the cash flow benefits aren’t the only reason why all businesses should consider an insurance premium funding solution. Check out our blog post here to learn more.