Insurance Premium Funding: Spread Your Business Insurance Over the Year

Insurance premium funding is often overlooked when business owners think about managing working capital.

Available to businesses Australia-wide. Instead of paying a large annual premium in one hit, premium funding spreads the cost over a term that suits your cashflow. That can help around renewal time, or in a seasonal business where cash comes in unevenly through the year.

Benefits of insurance premium funding

• Manage your insurance cost in regular instalments instead of a lump sum.
• Keep cash available for other business needs.
• Interest and fees may be tax deductible for some businesses. Check with your accountant or tax adviser, as it depends on your circumstances.
• The application is usually simpler than for traditional bank lending.
• No collateral security is needed, unlike some bank line-of-credit products.

What insurance can be funded?

Premium funding is available for many types of commercial insurance, which may include:

• General business insurance
• Professional indemnity insurance
• Workers compensation, where it's placed through an insurer (varies by state)
• Public and products liability insurance
• Motor vehicle insurance
• Plant and equipment insurance
• Construction insurance

Ask us about funding other commercial insurance not on this list.

Other large business expenses that can be funded

Professional fee funding

Some lenders offer a similar service for professional fees, such as your accountant's annual invoice.

Registration funding

Businesses with large registration costs for vehicle, truck or prime mover fleets may also use a similar type of lump-sum funding.

See other loans for business or ask us about funding other lump-sum expenses.

A simple application

With many lenders, your business provides the insurance premium invoice to start the application. Once assessed, the lender returns finance documents setting out the repayments for you to review and sign.

Security requirements

No collateral security is needed. If the business is a Pty Ltd company, director guarantees are usually required, as with most company finance. Some businesses find this a useful alternative to an overdraft or line of credit secured by real estate or a charge over business assets.

Who provides premium funding?

Broadlink can arrange insurance premium, professional fee and registration funding through selected Australian banks and financiers. The insurance types they'll fund vary, and some also fund professional fees and fleet registrations. When a broker presents an application, more than one lender can consider it.

Talk to us about premium funding options.

Choice doesn’t have to come at a cost

We don't charge customers a fee for arranging finance; the lender pays the broker. In rare cases there may be an upfront charge for a specific extra service the lender doesn't cover, such as an equipment inspection. Lenders may charge their own establishment fees, and government fees can apply depending on the finance type.
How brokers are paid.

Related reading: Equipment Finance Broker vs Bank · No-Financials Equipment Finance Explained