There are times when insurance carriers offer payment terms that do not suite our clients needs. These insurance premiums can become quite expensive therefore creating cash flow challenges.
This is when a premium financing company can help. Johnson, Kendall, & Johnson Inc. is constantly looking to provide our clients with the best possible service. We work with several premium financing companies to find the best rates & payment terms to assist our clients.
How does the process work?
Typically, JKJ will work with the financing company to quote the policy (ies). Once the loan is finalized the insured is required to sign a copy of the loan agreement and forward it over to JKJ along with the down payment. JKJ will then sign the agreement & forward to the financing company noting that the down payment has been received. At this point in the process JKJ will then pay the insurance carrier and the insured will be responsible to pay a monthly installment to the premium financing company.
What are the advantages of premium financing?
- Avoid large up front premium payments & take advantage of installment payment options
- Finance numerous insurance policies into one agreement
- Use money saved by avoiding up front premium payments to better run YOUR business
Author: Kyle Rogers, Accounting Supervisor