Premium funding is a financing option that allows you to pay your insurance premiums in monthly installments, rather than one lump sum. This can be a great option for businesses that want to spread out their insurance costs over time, rather than having to pay a large amount all at once.

One of the biggest benefits of using premium funding is that it can help you manage your cash flow more effectively. Instead of having to come up with a large amount of money to pay your insurance premiums upfront, you can spread the cost out over several months. This can make it easier to budget for your insurance expenses and ensure that you always have the coverage you need. Essentially, premium funding is a line of credit extended to your business, so it can act in your favour by establishing and maintaining a good credit rating for your business, enabling you to borrow more in the future if needed.

Another benefit of premium funding is that it can help you access insurance policies that you might not be able to afford otherwise. For example, if you’re a small business owner and you’re struggling to come up with the money to pay for a high-priced insurance policy (maybe you want to take out a machinery breakdown policy for your café business so you’re not worrying about what happens if your freezer breaks down and you don’t have the immediate funds to fix or replace) – premium funding can help you get the coverage you need and want without breaking the bank.

In addition to simplifying your insurance program with one installment per month for all your policies and making your insurance more affordable, the interest charges in premium funding are tax deductible, making it work for your business. In the end it’s a smart and strategic move for a lot of businesses.

So if you’re a business owner looking for a better way to pay your insurances, consider giving premium funding a try. It might just be the solution you’re looking for.