When you use Premium Funding, your insurance policy is still issued with the same insurer and provides the same cover. The difference is that you finance the premium through a short-term loan and make fixed monthly repayments instead of paying the full amount upfront.

Here are the key things to know:

• Separate agreement – You will sign a premium funding contract in addition to your insurance policy.
• Fixed monthly repayments over 10 months – These provide a predictable cash flow. A 12-month option is sometimes available, but often with an overall higher interest amount payable.
• Interest and fees – Premium funding adds costs such as an establishment fee, fixed interest, and possible penalties if a payment fails.
• Certificate of Currency timing – Certificates are normally issued once the first premium payment clears, which can take a couple of days. We can work around this if the first payment is made directly instead of through funding.
• Cancellations and refunds – If your policy is cancelled mid-term, any refund will be directed to the funding provider first.
• Multiple policies in one agreement – You can fund several policies together under one contract, which simplifies payments.
• Credit check – A credit check is usually part of the approval process.
• Tax-deductible interest – The interest charged may be tax-deductible. We recommend checking with your accountant.
• Renewals – At renewal, premium funding can usually be rolled over easily. In most cases, you just need to confirm in writing by email, rather than reapplying or signing a new contract.

Premium funding is a useful way to smooth out cash flow and manage expenses, but it is important to understand the costs and terms before proceeding. We will explain everything up front, guide you through the process, and make sure you are comfortable with the arrangement.

Contact us to discuss premium funding options and whether this solution is right for your business.