There are several financing options for insurance companies. To finding the best one can be challenging. In this presentation, you can know the different loans options which are available to insurance companies. For more information check here - https://www.biz2credit.com/blog/2020/05/19/how-to-choose-the-best-loan-for-your-insurance-agency/

1. Copyright 2019 Biz2Credit, Confidential
Copyright 2019 Biz2Credit, Confidential
How to Selectthe Best Loan for
Your Insurance Business?

2. Copyright 2019 Biz2Credit, Confidential
Do you own an insurance agency?
If yes, there are a number of reasons you might need a loan; for example, you might want to expand your
business on another location, hire new work force, or buy a competitor’s agency.
So the question is—which is the best loan for your insurance agency?

3. Copyright 2019 Biz2Credit, Confidential
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Interest rates & Fees:
Lower interest rates and fees can
save tens of thousands of dollars
Repayment term: Longer
repayment terms will make the
monthly installments lower and
vice versa
Eligibility criteria: Make sure to
qualify for the Loan eligibility
criteria.
Purpose of the loan: There’s no
one-size-fits-all solution for
choosing a business loan
Considerable
Factors when
choosinga loan
Copyright 2020 Biz2Credit,Confidential

4. Type of Insuranceagency loans for yourbusiness
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Traditional Bank Loans-
You can get a loan directly through your bank or credit union. It
can be challenging and hard to secure a business loans through
traditional banks or credit unions. The bank can put your
business into the “high-risk” category due to the nature of
insurance, which can impact the terms of your loan.

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SBA Loans-
The Small Business Administration (SBA) provides a
number of lending options to small businesses, including
SBA 7(a) loans, which can be a viable option for insurance
agencies. This SBA loan program offers $5000 to $5 million
business loans to insurance agencies.

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Small Business Loans from Alternative Lenders-
If your insurance company doesn’t qualify for a
traditional bank loan, alternative lenders can be a great
option for securing the loan you need for your
insurance business. Alternative lenders offer a hassle
free way that’s typically lacking in other financing
options, including less paperwork, shorter approval
periods, and lower credit standards.

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Book of Business Loans-
Book of business financing leverages your insurance
company’s book of business—It works as future
commissions—as collateral for the loan. If you’re
planning to buy a running insurance company, you can
also use that book of business as collateral for a
business loan. If you’re thinking about applying for
book of business loans, you need to seek out a lender
who specializes in the insurance industry.

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Lines of credit-
A business line of credit can be used similar to a
business credit card. When a financial institution
approves loan for your business -- a line of credit (can
be anywhere from $10,000 - $1 million) you have the
option to use a portion, all, or none of that line of
credit—and the interest will only be applied on the
portion you use.

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More Resources-
https://www.biz2credit.com/blog/2020/05/19/how-to-choose-the-best-loan-for-your-
insurance-agency/
https://www.slideshare.net/biz2credit/what-is-cares-act-ppp-loan-forgiveness-and-
how-to-get-it