What is Premium Financing?

In order to preserve cash flow or for other economic considerations, a company or professional practitioner (an “insured”) may choose to finance the cost of their insurance coverage so as to avoid the pain of a one-time insurance policy payment.

What is the relationship between an insured and the premium finance company?

By financing their insurance, the insured has entered into a loan contract with the premium finance company and has given the premium finance company the authority to make their payments as well as cancel the financed insurance coverage in the event the insured defaults in making scheduled loan payments.

Who can finance their insurance?

Virtually any insured business or professional practice is eligible to finance their commercial insurance coverage.

What are the Benefits of Premium Financing?

Improved cash flow, consolidated insurance payments, no lengthy approval procedures, fixed financing rate, interest on the policy is tax deductible & loan prepayment benefits to name a few.