Agency Loan

April 7, 2008



(PFA) Premium Finance Associates has the capability to offer both Private Equity financing as well as Debt (Bank) financing. The difference in offering depends on the size of the agency and annual revenue generated.

Our Private Equity is reserved for agencies under $300,000 in annual revenue. The agency must have been in business a minimum of three (3) years in order to qualify. We will redirect the commission streams from one or more carriers into a mutually owned account, controlled by the funding source, where the monthly obligation is met. Any revenue above that obligation will be swept back into the agency’s account. 

The commissions must be directly written with the carrier – no brokered or Excess and Surplus commissions qualify. Interest will range from upper single digit to lower double digit and amortization up to 8 years. The loans can close in 30 days or less.

Our Debt or Bank loans are reserved for agencies writing over $300,000 in annual revenue. We generally ask for the agency financial statement as well as the last two years tax returns for analysis. We have unique banks that understand the value of renewal income and based on past credit and revenue trends, will offer up to one-to-one and a half times annual revenue.

Five year terms are generally offered and twenty percent (20%) down payment by the purchasing agency along with twenty percent (20%) carry back note by the seller is standard – while the bank finances sixty percent (60%) of the loan. Loans generally close within 45 days – usually 30 days.

Our partner Mike Meyers from (NCA) National Capital Advisors has worked with Brooke franchises in the past.  His expertise is in the larger transactions – over $1,000,000 – including brokers and (MGA’s) Managing General Agents.

Mike and I would like to schedule a call with you to offer quick and competitive transactions. (PFA) Premium Finance Associates would also like to offer competitive Property & Casualty as well as Life Insurance premium financing services to agents who close transactions with us. 

**For more information, contact Bill Friend at Premium Finance Associates at 866.FRIEND.0 (374-3630) or email to get a no obligation consultation and quotation.

Looking for insurance agency acquisition, agency purchase, insurance loans, agency loans, small business loans, or a restaurant loan? Learn more about our insurance agency loan services ยป