Down Payment, Audit and Fully Earned Premium Finance

December 11, 2017

Down Payment, Audit and Fully Earned Premium Finance

Most insureds can afford to pay a 25% down payment. Some insureds with tight cash flow could probably cobble the money together for the down payment, but would be grateful if they had an option for little or no out of pocket expense. It boils down to cash flow.

PFA - Premium Finance Associates - offers a ZERO DOWN option for the Excess & Surplus lines markets that require 25% down payment on their insurance premium finance contracts. There are certain qualifications for contracts:

  • The down payment must be at least $5,000.
  • The insured must have monthly deposits at or above $10,000 monthly.
  • The insured must have at least 6 or more deposits per month.

If the insured meets the above requirements, then we will send them a preliminary term sheet. Funds can then be released within 24 hours of signed contract.

Once the agreements are funded, the insured will have two (2) obligations. The first obligation is to the insurance premium finance company, which is typically a monthly invoice. The second obligation will be for the down payment which is typically EFT’d daily or weekly from the insureds business account. Terms are typically 6, 8 or 10 months with weekly payments.

Insureds can also get hit with large audits that are due within 30 days of policy expiration. These are typically Commercial Auto, Trucking and Work Comp policies. Premium Finance Associates can finance audits from $5,000 to $2,500,000 within 72 hours over 6-12 months, depending on the insureds qualifications. For now, Premium Finance Associates is funding the insureds directly and will have forms in place soon to be able to fund the carrier directly.

We have seen many insureds get into financial straits due to fast growth. This can typically happen with new businesses. The problem is that these New Businesses may not have yet qualified for a “Business Line of Credit.” If they meet the qualifications mentioned earlier in this article, then we can most likely get them the cash they need in order to continue operating. Once we begin funding new companies via high risk capital, we can usually walk them into a local or regional banking relationship after 2 years of operation.

Premium Finance Associates also offers Bond Financing Programs. Bonds are typically fully earned and cannot be financed. We offer an alternative financing program for bond premium, but the minimum premium must be at least $5,000.

Insurance agents that bring Premium Finance Associates weekly accounts may qualify for compensation. In addition to access to our Online Premium Finance Quoting System, we offer Down Payment, Audit and Fully Earned Premium Financing. “We believe we have very competitive financing solutions for insurance agents,” says Bill Friend, owner of Premium Finance Associates. “We offer competitive solutions to agents when their insureds are between a rock and a hard place.”


For more information, see below contact:


**Brand New - Commission Advance programs for Insurance Agents and Businesses

Bill Friend, Principal 
7603 First Place Dr., B-12
Cleveland, Oh. 44146
866.FRIEND.0 (374.3630)
866.839.3090 fax
216.225.4321 cell

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