It seems very appropriate in this current very challenging COVID-19 environment to talk about flattening the curve on lumpy company expenses.
We currently live in a world where cash flow is king and anything that can be done to reduce significant outgoings over these next 6 to 9 months is well worth considering.
However it is very much a case of buyer beware, as many products offered in this space known as Insurance Premium Funding (IPF) which are usually included in insurance renewal documents may be convenient but they can often come at a significant premium to what is really available in the market and just as conveniently available (including bulk registrations on vehicles).
It’s a little like the life insurance policies offered through credit card companies, they seem quite attractive on first glance however as you drill into the numbers you can see it is quite a premium relative to the cover provided.
In today’s market there are an increasing number of banks and finance companies who will compete stridently for this business and offer very low rates of interest as well as an easy, seamless finance approval process. Although this style of finance is typically over short terms (10 – 12 months), the savings can be thousands of dollars each year.
Many banks now offer business owners very competitive and easy finance solutions for insurance premiums on both cancellable and non-cancellable policies.
Types of Insurance Premiums that can be typically financed include:
*Requires a common due date
Recent examples of savings we have seen on Insurance Premium Finance have indicated around a 12% reduction on historic finance cost levels:-
So if you’re interested in spreading the cost of your insurance premiums & registration costs over a 10, 11 or 12 month term and want to save a few extra dollars, suggest you give Finlease a quick call.
The 5 minutes taken could reap several thousand dollars in cost reductions (not a bad hourly rate).
Mark O’Donoghue, CEO & Founder of Finlease
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