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The benefits of using Premium Funding to pay your Business Insurance premium
If you’re a business owner, you know that having the right insurance is essential to protect your company from potential risks and liabilities. But let’s be real – paying for insurance premiums can be a real pain in the wallet.
That’s where premium funding comes in.
Premium funding is a financing option that allows you to pay your insurance premiums in monthly installments, rather than one lump sum. This can be a great option for businesses that want to spread out their insurance costs over time, rather than having to pay a large amount all at once.
One of the biggest benefits of using premium funding is that it can help you manage your cash flow more effectively. Instead of having to come up with a large amount of money to pay your insurance premiums upfront, you can spread the cost out over several months. This can make it easier to budget for your insurance expenses and ensure that you always have the coverage you need. Essentially, premium funding is a line of credit extended to your business, so it can act in your favour by establishing and maintaining a good credit rating for your business, enabling you to borrow more in the future if needed.
Another benefit of premium funding is that it can help you access insurance policies that you might not be able to afford otherwise. For example, if you’re a small business owner and you’re struggling to come up with the money to pay for a high-priced insurance policy (maybe you want to take out a machinery breakdown policy for your café business so you’re not worrying about what happens if your freezer breaks down and you don’t have the immediate funds to fix or replace) – premium funding can help you get the coverage you need and want without breaking the bank.
In addition to simplifying your insurance program with one installment per month for all your policies and making your insurance more affordable, the interest charges in premium funding are tax deductible, making it work for your business. In the end it’s a smart and strategic move for a lot of businesses.
So if you’re a business owner looking for a better way to pay your insurances, consider giving premium funding a try. It might just be the solution you’re looking for.
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 appropriate 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.
All information above has been provided by the author.
All information above has been provided by the author.
Laura Meyer, MeyerInsure, ABN 87 340 928 486, AFSL 233750
This article originally appeared on MeyerInsure Blog and has been published here with permission.
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