Despite recession-related difficulties for many industries, now is actually a good time to be in the insurance business. According to research by the EMC Corporation, the insurance industry has seen positive growth in the past few years as the economy recovers and as consumers begin to invest more in their homes, autos and businesses.
Whether you are a program administrator, MGA, wholesaler, retail agency that provides term and whole life insurance, specialty property and casualty lines insurer, or long-term care insurance agency, small business loans are a proven tool to help you obtain the capital you need to be competitive and see positive growth in this demanding market.
See below to learn how you can use insurance agency financing to benefit your business.
To build up a business organically is typically a slow process, which is not made easier by the natural attrition of clients. Acquiring another agency or purchasing its book of business can be a fast way to build your business. A business expansion and acquisition loan from Fundation can help.
Business Growth Through Technology
Insurance is a mature industry that needs to adjust to a shift in consumer demographics in order to grow. Additional capital could allow you to grow your business by investing in technology online and mobile use of your services, which have become more and more appealing to today’s consumers. EMC’s research points out that a technology update to your systems could also make your business more efficient by automating various daily business processes.
Recapitalization allows for new types of equity and debt restructuring within your insurance business, whether through refinancing or through restructuring the company’s ownership. Added capital from a refinance loan can make recapitalizations possible.
A crucial part of realizing a profit from your insurance agency is planning for a successful succession when the time is right. Succession expert Michael Mensch, of Agency Brokerage Consultants, advises adding debt financing into the equation so that more competitive bids are possible for the seller and more attractive to the buyer.
Have you found other productive uses for insurance agency loans that have helped your agency thrive? We would love to hear about your experience in the comments section.
The information contained on this page is for general informational purposes only. It is not legal advice and should not be relied upon in making borrowing decisions. Fundation loans are subject to lender approval.
Fundation combines the benefits of a bank loan with the ease and efficiency of an online lender. We offer conventional loans with competitive rates to businesses with varying credit profiles. Our technology allows us to deliver capital in as few as 3 business days through streamlining the collection and evaluation of customer information and conducting the majority of the lending process electronically. As a direct lender, we use our own capital to originate and hold the loans we make, so that we can focus on building relationships with our customers. Our dedicated customer relationship model enables us to understand each unique borrower’s business. This level of service, coupled with our best-in-class products, is why many of our customers come back to us repeatedly for more capital.