Putting Premium Finance to Work for Insured Businesses

The benefits of insurance premium finance

Premium financing lets an organization reallocate cash that would otherwise be committed to lump-sum advance payments for commercial insurance. Typically, the business applies that cash to better use as operational capital – for growing the business and investing in people, equipment, facilities, research and expansion. Additionally, many organizations, such as those with seasonal business, take advantage of the ability to match revenue streams to repayment schedules.

Premium financing facilitates control over cash flow because the insured business spreads insurance costs over a specified payment period. And, in some cases, premium financing makes it possible for companies to afford the full and proper insurance coverage they need but might not otherwise commit to buying.

Additionally, a premium finance loan also may grant the insured borrower an additional credit facility without disturbing existing credit arrangements. The premium installment contract is simple and easy to understand – a straightforward two-page document that complies with regulatory statutes in Quebec and Canada.

Not all insurance premium finance providers are the same. CAFO knows insurance premium finance like nobody else in Canada. With 60 years experience as the pioneering leader in this field, CAFO is able to offer insured businesses unmatched depth and breadth of capacity and resources, along with superior service and an ability to handle complex accounts and customized repayment schedules.

Click here to open a PDF brochure detailing the benefits of Insurance Premium Finance for insured businesses.