Premium finance demand surges for Covid-hit SMEs amid insurance premium hikes
As SMEs finances are being squeezed, demand is up for premium finance, with nearly three quarters (73%) of SME bosses who use credit to pay for insurance, admitting that the pandemic is the main reason for increased borrowing, according to premium finance provider Premium Credit Ltd (PCL).
To help businesses consider finance options as they plan for the future post-pandemic, MGAM has partnered with PCL to offer brokers access to an umbrella premium finance arrangement.
Premium finance – more relevant than ever
Cristian Jackson, Sales Director, at Premium Credit – MGAM’s new insurance premium finance (IPF) partner – explains why this increasingly popular payment option is playing an integral role in helping businesses weather the Covid-19 storm.
Whatever your corporate experience during the pandemic, it’s never been more important for firms to retain appropriate levels of insurance cover to protect their businesses. IPF enables customers to spread the cost of this cover into convenient monthly payments, but there are other benefits to using MGAM’s instalment facility too, including:
- Improved cash flow: eliminates the requirement for a large up-front payment, freeing up the lump sum to use elsewhere in the business and avoids the need to liquidate other assets
- Complete cover: ensuring the upfront cost doesn’t lead to cutting corners on insurance cover, particularly where the business is faced with rising premiums at renewal
- Flexibility: multiple insurance policies can be attached to a single premium finance agreement allowing for a single payment plan and single direct debit, or you could finance part of one policy allowing the business still to achieve in year budgets even with increased premiums
- Retained Capital / Off Balance Sheet Lending: by using Premium Credit’s capital, customers can retain and re-invest capital in their business through an off-balance sheet item
The application process is simple and straightforward and having invested heavily in core technology platforms over the past 5 years, Premium Credit’s IPF solutions provide a smooth, seamless, integrated and compliant customer journey.
To find out more visit our website or contact:
Mark Fisher Chief Operating Officer
T: +44 (0) 203 946 9102
M: +44 (0)7765 425713
E: mark.fisher@mgamutual.com
About Premium Credit Limited
Premium Credit is a leading provider of premium finance and a range of annually charged services, including professional and golf memberships, tax, school fees and season tickets. Each year, Premium Credit lends £3.6 billion to over two million customers through a network of almost three thousand partners.
Premium Credit is an award-winning technology-led specialist and the only premium finance provider accredited by BIBA, ABI and MGAA. For more information, please visit: www.premiumcredit.com