Premium Funding

Premium funding is a great way to smooth out your business insurance costs over the course of the year.

It means rather than having to pay the total amount of the premium upfront, the business can pay it off in instalments, plus interest. The cost of the interest will usually be a tax deduction for the business.

Premium funding involves borrowing an amount to cover the cost of the firm’s insurance premiums, in addition to interest payable on top of the amount borrowed. “This type of funding suits businesses with lumpy cash flow,” says John Clark, Steadfast’s broker support manager.

This type of funding can be used to pay for a range of different business insurances, including product liability insurance, theft and business interruption insurance.

The funder may wrap up cost of the premiums into a single loan, allowing the borrower to pay for a range of insurance policies in a single payment