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How Premium Financing Can Help Your Agency

Finance, Premium Financing

Your agency would benefit from premium financing, and having a good relationship with such a company is very important because it will allow you to provide more effective payment options for your clients. It would also allow your clients who have policies from several different carriers to have one monthly payment as opposed to several different ones, so premium financing can help your agency in more ways than one.

An agency would benefit from premium financing because they can provide you with an independent credit facility for your clients without asking the agency to have a specific volume or minimum quota to finance. Additionally, the services of the premium finance company would be available on a need-be basis, and the agency’s credit facility with the premium finance company would provide more options and means for clients to pay their premiums, and this would be in addition to the programs the agency may already be using.

Premium financing allows clients to avoid having to tap into their line of credit or having to use available cash to pay the premiums that are due and also allows agencies to finance policies for multiple carriers for the insured on a single premium finance note. The insured would have to make one monthly payment as a result, and these aspects would be more appealing to prospective clients. Your agency would not be responsible for the collection of the premiums financed by the premium finance company, and depending on your agency’s relationship with them, you would have more flexibility with regard to deferring payments for an insured depending on the circumstances. This would not be the case if you were with a company billing plan, so these are ways through which your agency would benefit as well.

Premium finance companies will finance premiums regardless of if a client has financial issues or a history of bad credit, so the requirements are not as strict, and your agency would benefit from this regard. Premium finance companies are able to do this because they have a power of attorney provision that grants them the right to cancel an insurance contract if there is no payment by the insured. They provide full payments of the premium in advance to the insurance company, so their right to cancel and collect the return premium allows them to offer financing to companies and individuals who would otherwise not qualify for such loans to pay their insurance premiums.

US Insurance Fundings can provide your agency with more information regarding premium insurance and financing. We are one of the leading finance companies serving Texas, Oklahoma, Arkansas, Georgia, and Louisiana. If you want accurate information from a reputable and reliable company, give us a call today!