What is Premium Funding and what are the benefits?
What is Premium Funding? And how your business can benefit from it
Did you know that a 2017 ASIC survey identified over 2 out of 5 small business failures are due to insufficient cash flow? As a small business, your insurance policies are obligatory, but the costs involved don't have to cause unnecessary financial stress. Read on to find out how Premium Funding your policies can benefit your business.
What is Premium Funding?
Premium Funding is a way to avoid paying your insurance premiums in a lump sum. When done through a broker, you can fund multiple policies together so that all of insurance premiums are paid in one monthly instalment.
Why Premium Fund?
- It frees up cash flow that would have otherwise been used paying insurance premiums upfront
- It is safe and secure funding with no impact on existing banking or credit arrangements
- Interest costs are usually tax deductible
- Offers fixed rates, protecting small business owners from interest rate fluctuations
- Means you're more likely to make sure you take out adequate insurance for your business
- It has no additional security costs, the insurance premium itself acts as security
- Gives you flexible options for payment, including Credit Card or BPay¬Æ
- Premium Funders will often provide an online login, allowing you to manage your account and see previous billing history
Talk to your broker
For more information about your Premium Funding options, be sure to contact your broker today or contact us. General Advice Warning This advice is general and does not take into account your objectives, financial situation or needs. You should consider whether the advice is suitable for you and your personal circumstances. Before you make any decision about whether to acquire a certain product, you should obtain and read the relevant product disclosure statement.
Advisr does not provide advice and does not hold a financial service license (AFSL). All information above has been provided by Centrewest Insurance Brokers.