Insurance Premium Funding allows you to ‘even out’ your insurance costs.  Rather than pay your yearly premium as a lump sum, Insurance Premium Funding allows you to repay the insurance costs on a monthly basis up to a period of 12 months. Insurance Premium Funding is at times commonly known as pay by the month insurance.

The agreement is at a fixed rate of interest and you are therefore protected against interest rate increases. As Insurance Premium Funding is a business expense the interest component of the loan facility is tax deductable.

In paying your insurance by Insurance Premium Funding you preserve working capital and pay the insurance expenses as you earn business income.