Insurance Premium Finance

Free up working capital and maintain liquidity
Predictable cash flow and ongoing liquidity are a requirement for any business. Insurance premium funding can improve cash flow management without affecting established borrowing facilities by freeing up working capital.

Easy Monthly Instalments
Premium finance allows you to avoid multiple lump sum insurance premium payments by paying monthly instalments that suit and simplify your cashflow. Interest rates are fixed and competitive, so you know exactly how much you’ll have to pay, and your other financing won’t be affected. What’s more, you can roll multiple premiums together into a single loan, so you only have to make one monthly payment to one party.

Avoid underinsurance
Spreading lump sum payments over time reduces the likelihood of underinsurance. Comprehensive insurance programs are more accessible when cash flow is not adversely impacted by large upfront payments. Don’t go searching for cash when it comes time to pay the premiums – just manage your payments as a normal monthly expense.

No tricks or hidden costs
With Grow’s insurance premium finance, you are guaranteed to have access to fixed, competitive interest rates. There are no ongoing loan service or security fees and you don’t need any security apart from the insurance policy itself. You will always have complete transparency about what you’re insured for and for how much.

Tax effective
Insurance premium finance may also be a tax effective finance strategy, with both the premium and the interest payable being potentially allowable business expense deductions.

How does it work?
Your insurance broker will put your policy in place as normal, but instead of giving the invoice to you to pay, we set up an agreement for the premium to be paid through the finance contract. We then pay the full premium to the insurance company, and you pay us in monthly instalments over the next twelve months. Even if you do have the operating cashflow to cover your premium costs, it may make sense to take out premium finance and use the retained capital to fund business development or growth. If you are a small business with volatile cashflow, insurance premium funding can be a really clever and inexpensive way to smooth out your operating costs.