Monthly Payments Options
Instead of paying a single lump sum premium at the beginning of your policy year, you have the option of spreading out the premium payments via instalments.
This facility is known as Premium Funding.
What Are the Benefits?
Simply put - Cash Flow! Because you only pay in instalments, you can keep more money in your business on a monthly basis rather than paying a large lump sum up front for all your insurances.
In addition, the interest payable for the funding service is Tax Deductible, Off Balance sheet and Guaranteed finance* so you are not using up your valuable financing sources to pay your insurance premiums.
How it Works
A Premium Funding (Finance) company pays your premium to the insurer on your behalf. Then you simply remit the premium to the funding company via monthly instalments.
How Many Monthly Instalments Can I Have?
As few as Three or as many as Twelve. Most people spread their premium over ten instalments as the best option.
Does it Cost More to Use Premium Funding?
Using premium funding works out more overall as there is an interest component charged by the premium funding company. The interest percentage varies depending on the premium amount funded, however it is usually around 10 percent.
How Can I Set Up A Premium Funding Facility?
Your Coastsure representative will automatically offer you a Premium Funding Option with every insurance cover you arrange. We take care of all the paperwork and all you need to do is to nominate the account you wish to use for your monthly instalments.