25 Aug Spreading Overheads-Easing Cash Flow

INSURANCE PREMIUM FUNDING

As we all work our way through these testing times during the COVID 19 environment, most businesses are looking at and re-assessing their business overheads and cash flow management.

We have never operated in times where the preservation of working capital has been more important, with a second wave of the COVID 19 pandemic in Australia and the unpredictability of future income forecasts. The methods of reducing or spreading current fixed commitments are well worth considering.

One of the large annual fixed overheads incurred by most businesses are the various types of insurances required to operate a business. There are many products offered for insurance premium funding (IPF) and normally form part of insurance renewal documents. Whilst it may be convenient to just tick and flick the attached paperwork with your renewal and return it ( another job done ), it could be at a cost considerably higher then is available in the market and just as conveniently available.

There are a number of finance companies and banks that now offer insurance premium funding via their third party distribution channel. These funders offer attractive interest rates and have a simple online approval process which is completed by your broker. Whilst the funding of your insurance premiums are only short term loans of 10-12 month duration there are still savings to be made by looking at alternative funders.

Types of insurance premiums that can be financed :

• Professional Indemnity
• Workers Compensation
• Public Liability Insurance
• Motor Registration and CTP
• Plus many others

We suggest if you would like to review the way you currently pay your insurances or consider spreading the cost, or look at an alternative way of funding your premiums give us a call or send us an email.

Your Savings could be well worth the free call.