While many insurers offer ‘pay by the month’ options for insurance premiums on consumer items such as cars, boats, health and other assets, the same offer is not always available for business insurance premiums.
As part of our support services for Australian business, Jade Equipment Finance offers Insurance Premium Funding to assist businesses that have large commercial insurance premiums. Insurance premiums are traditionally calculated per annum and payable on the renewal date for the policy. If the premium is not paid, the insurance effectively becomes invalid. This can be a significant risk to many businesses.
Insurance Premium Funding (IPF) assists business by providing funding to split the cost of the insurance premium into more manageable payments which are paid at set times throughout the year. Instead of paying the one annual payment, you may spread the payments into smaller amounts and pay, say monthly, quarterly or half-yearly.
Businesses in many industries utilise IPF to assist their cash flow and keep their business thriving. Transport industry operators utilise IPF for carrier liability, motor vehicle insurance, public liability and insurance to cover stock. Professionals in the legal and medical sectors utilise IPF for their professional indemnity insurance premiums.
The amount that you can apply for IPF varies across different industry sectors but insurance premiums from as little as $5,000 up to and beyond $1m may be applicable. The premium funding allows those large expenses to be paid off in instalments throughout the year.
IPF represents an effective, relatively easy and quick method to improve your cash flow while retaining your necessary insurance coverage. Like all financial solutions, the tax deductibility and other implications should be discussed with your accountant.
If you have burdened with large annual insurance premiums which are restricting your business operations, speak with a Jade consultant about how an IPF would work for you.
Speak with a Jade Equipment Finance Consultant to discuss a Insurance Premium Funding for your business. Call 1300 000 003