Insurance premium funding
An annual business insurance premium landing as a single invoice can take a serious bite out of working capital. Premium funding spreads it across the policy year so the cost lines up with the cover you are actually using.
The funder pays your insurer the annual premium up front. You repay them in monthly instalments across the policy term, typically ten or eleven months.
The security is the policy itself. If repayments stop, the funder can cancel the policy and recover the unused portion of the premium, which is why this is usually straightforward to arrange.
It keeps a large annual outgoing from distorting one month's cashflow, and it leaves your other facilities free for revenue producing assets rather than an insurance bill.
It also makes it easier to hold the cover you actually need instead of underinsuring to manage the up-front cost.
Premium funding is priced as a rate over a short instalment term, not as a long-term loan, so the headline percentage is not comparable to equipment or property finance. What matters is the total cost of the instalments against paying the premium outright.
Send us the insurer's invoice and we will come back with the real figures rather than a range that will not match your policy.
Most commercial lines: public and products liability, professional indemnity, business pack, commercial motor and fleet, marine cargo, plant and equipment, and workers compensation where the scheme allows it.
Multiple policies renewing at different times can usually be brought onto one facility.
Is my insurance affected if I fund the premium?
No. The cover is identical. The only difference is who pays the insurer up front and how you repay it.
What happens if I cancel the policy mid-term?
The unused portion of the premium is returned and applied against the funding balance, which is what makes the policy itself the security.
Can I fund workers compensation?
Often yes, depending on the state scheme. Send the invoice and we will confirm.
Tell us what you are funding and we will benchmark it across the panel. Call 0412 833 197 or request a quote.