By Geoff Scofield, Westlawn CEO & Managing Director 8 October 2013
You have your business properly insured, and while this provides peace of mind knowing your livelihood is protected, that yearly insurance premium often seems to fall due at the most inconvenient time.
Do you juggle expenses to find the money? Or do you reach for the company credit card? As a business owner, you understand these aren’t ideal solutions, but what choice do you have, right?
Well, there is a much better solution. And it’s called insurance premium funding. This is where a financier pays your annual insurance premium on the due date on your behalf and then the business repays the money as a short term loan of up to 12 months.
The idea of spreading annual insurance premiums into far more digestible payments of up to 12 monthly instalments should appeal to many business owners. But what may be surprising is that many small and medium sized businesses are not aware of insurance premium funding, or do not utilise it. The benefits for business, however, are many.
Your business can smooth cash flow, particularly if you experience fluctuating income. It also allows you to retain capital to grow your business. Applying for insurance premium funding is relatively simple, payment terms are generally flexible and payments can be made automatically through direct debit.
Interest is payable at a fixed rate, so there’ll be no changes to the premium during the term. And, depending on your situation, interest costs are generally tax deductible, but you’ll need to check that with your accountant or tax adviser.
To find out more, contact your Westlawn Insurance Broker.