Premium finance broker referrals increase

Close Premium Finance said that broker referrals increased significantly at the tail end of 2009 and has predicted that premium finance will remain popular thoughout 2010.

Tim Wilson, director at Close Premium Finance, said: “The challenge of sourcing and securing credit was arguably the biggest preoccupation for businesses of all sizes throughout 2009. Many organisations have been hit by the reluctance of traditional funding providers to make credit available and so have had to think creatively about how to maximise opportunities to create liquidity in their businesses. Premium finance has proven a highly effective way to do this and we expect more businesses to take advantage of this as margins continue to be squeezed in 2010.

Mr Wilson continued: “Despite the obvious benefits, many companies remain unaware of the positives that premium finance can provide – economic rates, 10 or six month terms, a high chance of acceptance, and tax relief on the interest charge. Commercial customers should speak to their insurance brokers about what premium finance can do for them to take pressure off other cash resources”