Insurance Agency Loan - Premium Finance Associates

December 9, 2013

In addition to the financing of insurance policies, Premium Finance Associates also works with Insurance agencies in accessing insurance agency for acquisition, perpetuation and cash flow. The average insurance agent is 59 years old and becoming keenly aware of the asset they possess. An established insurance agency can be very profitable and certainly carriers value for the owner as they approach retirement.

The problem is that many banks will not lend against the renewal income or cash flow of the agency. Banks typically look for something tangible to use as security when making loans. Renewal income isn’t something banks can see or touch. Renewal income, albeit consistent, usually does not fit in a bank’s wheelhouse.

Premium Finance Associates through it strategic relationship with Springtree Group, has formed a platform of 10 unique lenders that will lend specifically in the insurance space. Depending on the size and scope of the agency, coupled with credit score and other factors, an agency can qualify for a loan up to 10mm. As stated earlier, the average agency owner is 59 years old and roughly 200,000 agencies will change hands in the next 10 years. Many of the owner’s we work with utilize these loans as lines of credit to buy agency’s in the area. It is easier to grow via acquisition than generically.

Typically, our average agency loan is between 300k and 1mm. The amortization runs 10 years with interest rates between 5.75%-6.50% with no prepayment penalty. Loans usually close in 45 days or less. Please call us to see what your qualifications are. We would be happy to set up a 30 minute call to discuss your particular qualifications.

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)

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