Premium funding insurance removes the burden of sizeable annual premium payments and smooth cash flow with convenient fixed monthly instalments.
Some other benefits include:
Easy monthly instalments
Your business can enjoy the convenience of easy monthly instalments. This enables you to manage your cash flow more effectively, providing extra liquidity to secure equipment and assets, operating lease, commercial hires, or any other business needs.
Improved Cash Flow Management
By avoiding large upfront payments, it helps smooth your cash flow. Spreading the cost of premiums over monthly instalments allows you to boost your working capital and maintain a steady financial position.
Fixed interest rate
Enjoy the reassurance of monthly fixed-rate repayments through direct debit. With a fixed interest rate, you can have peace of mind, knowing that your payments will remain the same regardless of fluctuations in interest rates. Your payment amount will remain unchanged throughout the agreement.
Consolidate premiums
Consolidate multiple insurance premiums, including Professional Indemnity, Public Liability, General Business Insurance, Workers’ Compensation, Cyber Liability, Building & Contents, Theft, or Machinery Breakdown, into a single finance contract. Simplify your financial management by rolling all your premiums together.
Tax benefits
In Australia, you can claim set-up fees and interest paid on finance as business expense tax deductions. Depending on your accounting structures and circumstances, the interest paid on the secured and unsecured business loan may sometimes be tax deductible. It’s always advisable to seek tax advice before making any claims.
No security required
In most cases, this type of finance does not require any collateral or security. This feature is particularly appealing to small business owners, as it allows them to access funds and spread payments without putting their personal or business assets at risk. However, for companies borrowing over $250,000, Directors’ Guarantees may apply.