Premium Funding

An arrangement following an agreement between an Insured and a finance provider, whereby the insurance premiums owed by the Insured to the insurer are paid directly to the insurer by the financier, thereby creating a debt which then exists between the Insured and the financier.

Power of Attorney over the insurance policy, including the ability to cancel the insurance policy and obtain a premium refund, is often used by the financier as security over such transactions.

The Insured then repays the debt to the financier over a period of time being less than 12 months and/or less than the period of insurance, and such repayments include a proportion of interest for the financier.

If you would like to know more about this product and how it can assist your business, please contact us.