In the uncertain market we currently find ourselves in, having business insurance is vital.
Business insurance essentially works the same as car or home and contents insurance. That is, you pay your provider a premium and they will cover your business if you need to make an insurance claim (subject to the terms and conditions and contract agreement).
Insurance premium funding
Insurance Premium Funding (IPF) is a financing solution that allows you to pay your business insurance as monthly instalments rather than one large payment. IPF comes with a number of benefits which are listed below.
Consolidate multiple premiums under one loan
This will simplify the repayment process as it will enable you to make one repayment on your premiums per month, rather than making a lump sum payment. IPF allows you to make simple and affordable monthly repayments. The amount and timing of instalments can be chosen to suit your business.
No security required
IPF is an unsecured business finance solution and hence no security is required, as the policies themselves underpin the finance contract. This creates a seamless and fast process from application to approval.
Flexible number of instalments
The term of an IPF contract can range from 6 to 12 instalments (subject to approval) over the life of the insurance program, meaning you can select a structure that suits your business’s cash flow. Being able to choose a repayment option and settlement terms that suit your business will help you manage your cash flow. This is particularly crucial for companies where business activity fluctuates throughout the year.
Utilise cash in other areas of the business
IPF will allow you to even out your cash flow. This gives you the capacity to grow and operate a business, by having cash available to invest in other aspects of the business including, product development, maintenance, employing new staff, upgrading equipment, and so on.
Don’t let the burden of paying your business insurance in one lump sum stop you from protecting your business. IPF is a flexible option that can be used for any type of business insurance product.
At Ledge, we specialise in providing insurance premium funding solutions to a large variety of businesses. If you would like to see how you can consolidate your insurance premiums into flexible payment options, or you are wanting to update your insurance premium funding, speak to your Ledge Finance Executive directly, or contact our offices here and we will be more than happy to assist.
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