premium funding

Premium Funding

  /  Premium Funding

What is Premium Funding?

Premium Funding allows your business to spread the cost of its insurance premiums over the year. Rather than paying your annual premiums upfront, you can borrow the value of your premiums and then pay them off in monthly instalments, plus interest.

KBI has relationships with several Premium Finance Companies and would be pleased to provide you with a competitive quote.

Can Premium Funding help my business?

The primary benefit of Premium Funding is that it prevents the need for a large outlay of cash. Premium Funding might be considered by:

Businesses that do not have the cash available to pay insurance premiums upfront (but could pay in monthly instalments.)
Businesses that expect to get a greater benefit from using their liquid assets for investment or profit-making activity.
Businesses with a variable or unpredictable cash flow. Premium Funding allows them to keep their cash on hand in case they need it.

What are the benefits of Premium Funding?

There are many reasons that a business might choose Premium Funding over paying insurance premiums upfront or borrowing from other sources. These include:

Conserved cash flow

Premium Funding frees up cash for profit-generating activities.

Flexible payment options

You can make your instalments in a number of ways, including by debit and credit card.

An additional line of credit

You can borrow to cover your insurance premiums without affecting existing finance arrangements like overdrafts.

A simple application process

KBI will organise quotes from trusted Premium Funding Partners. Once you pick a program, the application is simple.

No collateral required to your assets

Security for the loan is absorbed over your insurance policies. You will not need to offer assets as collateral or make additional financial guarantees.

Tax deductible interest

Your commercial insurance premiums and the interest charged on Premium Funding are both tax deductible.

Our Premium Funding Partners

IQumulate

IQumulate is a Premium Finance Company with 16 years of experience. As of 2021, they provide solutions for over 60,000 businesses.

Target Market Determination (TMD): iQumulate

attvest finance

Attvest Finance is an independently managed Premium Finance Company run by industry experts. Combined, their team has over 250 years of Premium Funding experience.

Target Market Determination (TMD): Attvest

Insurance Premium Funders Code of Practice

The Australian Finance Industry Association (AFIA) and its Insurance Premium Funding members are currently setting up an industry code for Premium Funders. All of KBI’s Premium Funding partners back the Insurance Premium Funders Code of Practice.

For more information about the Code of Practice, click here: AFIA Insurance Premium Funding Code of Practice