These instalments include FSA levies and Professional Indemnity Insurance.
Developed by Bank of Scotland, Clerical Medical is now offering this loan to financial advisers to use for their own business requirements as well as with their corporate clients.
Insurance Premium Funding allows companies to spread the cost of all types of commercial insurance premiums with the aim of easing cashflow and allowing working capital to be used more efficiently.
The loan does not require security and can be repaid quarterly (subject to certain terms and conditions) or in six or ten monthly instalments. The minimum amount which can be borrowed is £1,000 with no maximum. Repayments are calculated using an interest rate which is fixed depending on the loan term and amount.
Insurance Premium Funding can be used in conjunction with the recently launched Commission Accelerator product to enable both the smoothing of income and costs.
Commenting on the launch, Charles Evans, head of market development at Clerical Medical, said: “Insurance Premium Funding is the latest product to be launched under the Clerical Medical intermediary support programme, Advice Matters. The programme has so far comprised of both practical and relevant support services and competitive products to assist financial advisers run and develop their business.”
Evans continues: “Insurance Premium Funding will take the sting out of paying for insurance premiums in lump sums, especially FSA levies and PII premiums, by spreading the burden with the ease of instalments. It’s another step towards Clerical Medical providing complete support to financial advisers in a challenging and continually evolving marketplace.”
