What is Insurance Premium Funding (IPF)?

Insurance Premium Funding is a simple, flexible and affordable method of paying your annual Business Insurance premiums.  Most Insurance Companies offer monthly premiums on Business Insurance policies but charge significant premiums for the convenience.

IPF can be:-

• A more cost effective way of achieving monthly payments:
• Structured to meet the financial needs of your business;
• Avoid large insurance bills having to be paid in one lump sum;
• A flexible and convenient way to spread insurance costs into smaller monthly payments;
• Stretched up to a 12 month term.

 Why do Businesses use IPF?

Cash Flow Management is an important requirement for any successful commercial business and a lump sum insurance payment could be disruptive to annual business cash flows. IPF can be used to fund most types of commercial insurance including industrial special risk, public liability, workers' compensation, motor vehicle, professional indemnity and most others.

What are the Benefits of IPF?

• Retain important working capital for your day-to-day Business operations, especially when it’s tough to get capital from Banks;
• Fixed interest rate – tax deductible;
• No loan security cost – the policy itself is the security;
• Flexible repayment options.

How does IPF work?

Insurance Premium Funders pay your annual insurance premiums by the due date in advance and on your behalf.  You simply pay back the funder over a term of up to 12 months in equal monthly payments.

There is no security needed for the provision of Insurance premium funding.  Utilising the insurance policy itself as security, premium finance does not require traditional 'bricks and mortar' to secure the funding.  Simply provide copies of your Insurance Premium Invoices and/or Annual Renewal Notices and we can obtain fast and easy approvals on your behalf.

The documentation and settlement process is simple too.  Documentation usually constitutes signing a one to two page Funding Agreement including a Direct Debit authorization before payment can be effected usually within 24 hours of signing.

What do I do next?

If you want to enjoy the convenience and affordability of Insurance Premium Funding, just call or email the friendly team at LKFS and we can arrange it all for you.