Much like your personal household or motor vehicle insurances, your corporate insurances can be paid by the month.
Premium funding is an innovative and cost effective way for companies to preserve cash flow and manage risk. Often, a large lump sum payment at the beginning of the insurance period can place an unnecessary strain on the cash resources of a business or may have a negative impact upon the company’s debt facilities.
Apart from conserving and smoothing cash flow, other benefits of premium funding are:
- It can be tax deductible
- It can be an “off balance sheet” form of finance therefore it may not reduce your borrowing capacity
- It can provide a cost benefit depending on the reinvestment rate of your business
- Usually, it isn’t secured to any of your business’ assets, as the insurance is the security
- As the cost of the insurance is spread throughout the year, this can ensure your business has adequate coverage in place
As Australian Reliance is one of Australia’s key introducers of premium funding, we have access to the entire market to ensure the most competitive fixed interest terms are secured for you.
For more information or to discuss premium funding your next renewal, please call Australian Reliance Sydney on (02) 8234 0417.