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SMEs can’t run the risk of being uninsured, how can you pay annual premiums without putting pressure on your cash flow?

No matter what industry your small or medium sized business is a part of, it’s likely that you know the hassle and stress of having to pay your annual insurance premiums. While this might not sound like much, many small and medium sized businesses need to keep their cash flow as stable as possible. However, this can be disrupted by paying huge lump sum amounts every year for all of your insurance premiums.

It is so important that your SME is protected by the many different types of business and liability insurance, depending on your industry. Even though business insurances can be complicated, and expensive, ultimately you cannot run the risk of being uninsured. The cost of paying your annual premiums is nothing compared to what the insurance can cover if you get yourself into a sticky situation, that could possibly financially ruin your business.

 

 

Business insurance can become a significant one-off annual cost for your SME, which has the ability to put some serious pressure on your cash flow. And if you own or manage a small or medium sized business then you will know that a predictable cash flow and ongoing liquidity are a requirement.

However, if you think your SME is the only small or medium sized business struggling with this, then you would be wrong. Luckily because this isn’t a one-off problem, there are solutions that can help you and your SME, to be sure you never run the risk of being uninsured.

That answer is Insurance Premium Finance (IPF). Insurance Premium Finance means that your insurance broker will put your policy into place as per usual, however instead of giving the invoice to you to pay, your chosen non-bank lender will set up an agreement for the premium to be paid through a finance contract, and not through a lump sum payment. Then your full premium will be paid by a non-bank lender, such as Grow Finance, while you get to pay in easy monthly instalments.

Non-bank lender, Grow Finance, allows your small or medium-sized business to find an easy, clever and inexpensive way of smoothing out your operating costs while always being insured.

“A comprehensive insurance program is more accessible when your cash flow is not impacted by large upfront payments, and every SME should have access to comprehensive insurance no matter what.”

 

Insurance premium finance can also improve cash flow management without affecting established borrowing facilities by freeing up working capital and spreading lump sum payments over time reduces the likelihood of underinsurance.

IPF gives you simplicity, convenience, flexibility, and even tax deductibility. Yes, you read that right, IPF is tax deductible, you can claim a deduction on your interest payments.

Since Grow Finance is a non-bank lender, who tailors their services to SMEs, they are the best option for you to get on top of your cash flow and have the ability to continue to advance and grow your business. No matter if you are in need of Insurance premium Finance, or Invoice Finance, Grow Finance has a tailored option for your SME, so instead of worrying, put the stress aside and get a helping hand from Grow Finance.

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