Cash flow is the key to survival of any business. Without sufficient cash flow it becomes very difficult for even the most profitable business to avoid financial disaster, or at the very least achieve its true potential.
When economic times are challenging, business leaders should be seeking ways to improve their cash flow and preserve their working capital at every opportunity. One of the easiest ways to do this is by paying your business insurance by the month through a premium funding facility arranged by your insurance broker.
Premium funding companies lend you the amount required to pay your insurance premium and pay it on your behalf. You then repay the premium funding company in monthly instalments over a period of typically 10 months.
The premium funding company charges a flat interest rate on the amount of the premium that is fixed for the term of the loan. And as the loan is secured by the insurance policy in most cases, no security is required. This ensures that applications are simple and processed quickly – usually within 24 hours.
The interest charge is usually tax deductible as a business expense.
Talk to us about preserving your business cash flow with premium funding.