Optimise working capital
The organisation’s working capital is retained by using a premium funding service and this money can be used to optimise other areas of the business operation, such as market research, product development or simply to have access to cash during times of economic uncertainty.

Additional funding source
Organisations can utilise FSL as an alternative funding line to relieve pressure on an existing bank facility to pay their insurance premiums.

Tax deductible
The cost of credit charge is tax deductible for businesses.

Transparency
All costs to our clients are disclosed up front and the finance rate is fixed for the duration of the loan agreement.

Simplicity
Unlike banks, the security criteria for arranging a premium funding contract are simple.  Clients do not have to sign personal guarantees or mortgages, or worry about onerous fees and set up costs.

Business protection
Insurance is a necessity of any business operation.  Premium funding provides a facility to enable organisations to more easily afford their annual insurance costs.  This allows organisations to operate with confidence, knowing that unexpected losses of assets, customers and profits are protected.

Illustration
Organisation ABC may have a $50,000 insurance premium to pay.  Having been issued with an invoice for the premium, the insurance broker or underwriter would require the total payment up front.

If the premium is funded, assuming a flat interest rate of 5% spread over 10 monthly instalments, ABC will still have $47,250 of retained working capital after their first instalment is paid.

Based on the above example, ABC pays $2,500 to finance their insurance premium and then claims this cost as a tax deduction.  The after tax cost to the company is $1,675.

With the Organisation retaining its own funds using FSL’s instalment option, the internal benefit, assuming an 8% return on its capital, would be $1,575 or after tax $1,055.25.

Therefore the net cost to premium fund $50,000 is $619.75, equating to less than $62.00 per month or just over $2 per day.

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