When it comes to paying your business insurance premiums, at times they can be an inconveniently large investment. Premium Funding payment solutions can help to free up your company’s finances, enabling you to put them to more productive and immediate uses by investing in areas that directly impact the growth of your business. Flexifund Australia is East West Insurance Broker’s Premium Funding arm that utilises FlexifundIT who is a provider of software the allows your business to spread the cost of your insurance premium(s) over equal monthly instalments. This service can be used by organisations of all sizes – from small businesses to large corporations.
Removing the financial burden of a lump sum payment can help free up your cash flow so you can utilise money which would otherwise have been spent on insurance. Aside from cash flow management, premium funding is a low-cost form of finance that’s unlikely to affect existing loan agreements. The rates that are offered are extremely competitive compared to other forms of financing and it is debt without personal guarantees or charges over business or assets.
The Benefits of Premium Funding
- Improves cash flow
Premium funding enables regular insurance payments to be paid monthly, this helps to free up your cash flow to use elsewhere in your business
- Low cost
Premium funding is a low-cost financing option with competitive fixed rates. This helps protect you from interest rate fluctuations
- Tax deductible
Your interest repayments may be tax deductible; however, it is always best to check with your Accountant for confirmation of what applies to your circumstances
- Multiple policies
You are able to pay multiple insurance policies with one easy monthly payment
- Easy to set up
Your broker will organise the setup of your Premium Funding
How Does Premium Funding Work?
Your East West Insurance Broker will guide you through the simple process of arranging Premium Funding. Firstly, Flexifund Australia will pay your insurance premium on your behalf by the due date to the nominated insurer(s). You can combine multiple policies into the one loan and then pay them in easy to manage monthly instalments. Flexifund Australia’s funding option can be extended to most types of insurance policies.
FlexiFund Australia will charge a flat interest rate on the amount of the premium that is fixed for the term of the loan. Additional service fees may apply; however, your broker will notify you of all charges when obtaining your quote.
The application process is much simpler than a bank loan and requires fewer background checks and credit reports.
Importance of Business Cash Flow
Cash flow is the movement of money in or out of a business from operating, investing and financing activities. Without positive 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. Only with positive cash flow can your business pay bills, build income and expand your expertise. Put simply, cash flow is the key to business survival.
One of the easiest ways to improve your business cash flow and preserve your working capital is to pay your business insurance by the month. With the help from FlexiFundIt, we can help to reduce the immediate impact of the cost of insurance premiums and free up cash flow for investment in other opportunities.
If you believe that Premium Funding would benefit you and your business, contact your East West broker to discuss your options and benefits for your business.