Purpose
What the funding is intended to support, and the outcome being considered.
INSURANCE & FEES / FINANCE SOLUTIONS
Insurance premium funding
An archived Monteus service page for insurance premium funding.
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Finance shaped
around the brief.
An archived Monteus service page for insurance premium funding. The right questions depend on the purpose, structure and timing of each request. Monteus can confirm current services and requirements directly.
Structure
The business, property or asset context relevant to the finance discussion.
Timing
Key dates, milestones and information needed to assess the next step.
This service has a captured page in the Monteus content archive. Current availability, terms, fees and claims require confirmation before launch.
SOURCE COPY / REVIEW REQUIRED
Insurance Premium Funding
Copy preserved from the Monteus archive, captured 2022-11-04. Confirm wording, terms and claims with Monteus before publication.
Even though the specific method can differ from company to company, the basic method is typically consistent.
For premium funding contracts, interest is typically calculated as ‘simple interest,’ so it does not compound over time. This simplifies the repayment calculation.
ANNUAL INSURANCE PREMIUM ($10,000) Funding Contract Term (12 Months) Funding Contract Setup Fee ($300) Funding Contract Interest Rate (15%) Total Interest Charge ($10,000 x 15%) ($1,500) Total Amount Payable (Premium + Fee + Interest) ($11,800) Monthly Payment (Total Amount Payable / 12 Months) ($983)
In many cases, small businesses prefer to pay $983 each month over $10,000 upfront.
Plus, if you purchase a business-related policy, the interest on the premium funding contract will be deductible.