As if Australian business owners hadn’t faced enough challenges this past year – now the dreaded annual insurance and workers compensation premiums will soon arrive. Here’s how to smooth them all out (and get an early bird discount!).
As a business owner, you know there’s no shortage of big bills you’ve got to keep one step ahead of.
And annual insurance premiums are no exception, whether for professional indemnity insurance, product liability insurance and public liability insurance, or any other general business insurance policy.
Throw your workers compensation premiums into the mix and you’ve got quite the annual financial hurdle to overcome.
Fortunately, a financing option exists that can ease your cash flow headache and help you become eligible for an early bird discount on your workers compensation premium.
What is Insurance Premium Funding?
Insurance Premium Funding (IPF) enables you to split your insurance payments into manageable monthly amounts that won’t impact your business cash flow like an annual lump-sum payment can.
Basically, any business with insurance premiums greater than $5,000 may have the ability to use IPF if needed.
The insurance premiums are normally financed over 8–10 months to ensure the premium is fully paid before renewal, and there is generally no security required.
Businesses often use solutions like working capital finance to keep cash available for day-to-day operations and growth opportunities, rather than tying up funds in large annual expenses.
Workers comp early bird payment discount due soon
One insurance premium that IPF is commonly used for is workers compensation.
That’s because in some states (including NSW, Victoria and Queensland), employers who pay their annual premium in full may be entitled to early payment discounts.
But to qualify, workers compensation premiums generally need to be paid in full before the early payment due date arrives.
By using Insurance Premium Funding to make this payment upfront, you can potentially secure the discount and offset part of the funding cost.
By taking this path, you can smooth out your business cash flow and redirect capital into income-generating opportunities.
If you’d like to find out more about financing options for IPF then get in touch with us today — especially if you want to remain eligible for workers compensation early payment discounts.
There’s no shortage of financial hurdles for businesses to overcome during difficult periods, so we’d love to help where we can. With specialists in equipment finance, property finance and insurance solutions, we’re your one-stop-shop for business finance needs.
