Paying your annual insurance premium when it falls due each year is essential for managing business risk. But like many businesses, this lump sum payment always seems to fall due just when you can least afford it, putting additional strain on your cash flow.
So, 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.
There is a much better way. 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
With North State Finance Insurance Premium Funding, you can spread your annual business insurance premium over 10 manageable monthly instalments. This way, your business can better manage cash flow throughout the year, while you have peace of mind knowing your insurance is up to date and your business is properly protected.
The idea of spreading annual insurance premiums into far more manageable 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 they don’t utilise it.
The benefits for business, however, are many: Your business can smooth cash flow, particularly if you experience fluctuating income. You can also retain capital to grow your business.
In addition, North State Finance Insurance Premium Funding offers:
Clear and simple loan application
No requirement to secure business assets for funding
Automatic deductions from your nominated account, removing regular paperwork
Ability to retain existing credit lines for other business purposes
Standard term of 10 months but terms between 6 and 12 months also available
No GST implications
Interest charge is generally 100% tax deductible for the business.
Contact North State Finance today
To find out how North State Finance can assist your business with insurance premium funding, ask your Insurance Broker or contact us today: