Premium Financing
Overview
Premium Financing Overview
Benefits to Enhance the Business Value Proposition
Premium financing is simply a variation of agency billing with additional profits.
- You set the repayment terms of the loan
- You set the rate you wish to charge
- You decide which policies you want to finance
Convert your direct bills to an agency payment plan and earn additional profits….
| Sale of Insurance Premium – Only | |
|---|---|
| Insurance Premium | $10,000.00 |
| Agency Commission % | 15% |
| Agency Commission Revenue | $1,500.00 |
| Producer Commission (30%) | ($450.00) |
| Other G&A (45%) | ($675.00) |
| Agency Net Profit: | $375.00 |
| Profit %: | 25.00% |
| Sale of Premium Plus Payment Plan | |
|---|---|
| Insurance Premium | $10,000.00 |
| Agency Commission % | 15% |
| Agency Commission Revenue | $1,500.00 |
| Producer Commission (30%) | ($450.00) |
| Other G & A (45%) | ($675.00) |
| Payment Plan Finance Charge | $500.00 |
| Expenses Associated with Payment Plan | ($75.00) |
| Agency Net Profit: | $800.00 |
| Profit %: | 53.33% |
Other Benefits:
- Avoid abrupt cancellations
- Protect and foster client relationship
- Enhance your business net worth
- Enhance your business value proposition
- Customize payment terms and dates to suit your clients
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