Soft market + credit crisis = "Perfect Storm"

September 30, 2008

We are in the midst of a PERFECT STORM - a soft market coupled with a credit crunch where money is no longer accessible to those in most need of it. PFA - Premium Finance Associates is offering a way in which insurance agents can increase and diversify their income streams by tapping their most valued asset - their insured's. We are helping agents create a win/win scenario by offering highly sought after financial products to their database and get compensated for doing so. If these companies do not get access to capital quickly, not only may they be unable to pay their insurance premium, but may go out of business altogether!

In this current soft market, insurance companies with high cash reserves are competing against each other causing premiums to drop between 25-40% in certain markets. As a result, agency commissions have considerably reduced due to the decrease in premium. While agents can increase their insured population, many will still realize a decrease in revenue from the previous year.

The financial markets have tightened after massive losses in the sub prime housing markets and spreading to many other sectors of commerce. The US Government has stepped in and taken control of several giant financial entities and pumped large amounts of cash into the economy to help reduce fear and panic. Established businesses have had all or portions of their lines of credit called in while new businesses have had little or no luck in establishing lines of credit with conventional banks. Insurance agencies in certain areas of the country have had their lines of credit called or decreased as well. We also offer unique lending packages to insurance agencies secured by their future commissions.

The products we offer are as follows:

  1. Business to business - account receivables funding more commonly referred to as FACTORING. We can advance a business up to 90% against invoices and purchase orders within 24 hours - the agency makes 25% of the profit.
  2. Business to business - Mezzanine lines of credit secured on receivables, inventory, equipment & machinery, property and personal signature.
  3. Business to consumer - Great for restaurants and retail outlets accepting credit cards as a form of payment. We can advance money secured against future credit card intake.
  4. Agency Loans - Secured against their future commission.

These products are in great need and can certainly strengthen the relationships agents have with their insured. Banks do not offer these products and most insured's do not have access to these unique resources. Below highlights the win-win-win scenarios created in offering these products.

Symbiotic Relationships

  1. Agent / insured - the agent has the relationship and is adding a value added product that will provide the insured a better service and give them access to money. ** will help strengthen the relationship and close the business in a market where added value sells.
  2. Agent / PFA - the agent now has a new product(s) to sell which will increase and diversify their income stream.
  3. PFA / insured - The insured will have access to money and receive a better service from our funding sources.

** Contact us now to find out how you can become an exclusive distributor of our asset based lending products.

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