Why choose premium funding?

Premium funding provides businesses and individuals the opportunity to pay their insurance premiums on a monthly basis rather than annually. You can fund multiple policies together so that all of insurance premiums are paid in one monthly instalment.

There are various reasons why many would choose to pay monthly such as; improved cash flow, free up capital and not underinsuring due to financial restrictions.

How does it work?

The elected funder pays the premium upfront to the insurer and then charges a monthly repayment amount. Interest is charged at a fixed rate for the term of the loan.

The most common loan term for premium funding is 10 months, however, you can opt for 12 months. The interest applied is calculated based on the loan term. For Example, a higher interest rate is applied when you choose 12 monthly payments rather than 10.

It is important to keep in mind that paying your insurance monthly via funding your premium will be more expensive than paying the full amount upfront.

Credit checks

All loans are subject to a credit check. If there are any current disputes or matters, you will need to provide proof of settlement or rectification before your loan can proceed.

Fees and charges

Paying your premium via monthly funding does incur additional charges. There is usually an application fee of $30-$60 as well as interest on the premium. If you default on your instalment there may also be dishonour penalty.


If you cancel your insurances mid-term, your broker will arrange the return premium from the insurer to be paid back to the funder.

If there is still a shortfall, your premium funder will seek to recover this directly from you either by a final instalment or direct payment.

Generally, you can expect to pay at least one more monthly payment after cancelling your insurance.

How can I apply for premium funding?

You can ask your broker to send you a quote and contract. This can either be signed and returned or electronically submitted via a hyperlink on the contract.

Our invoices will normally feature a premium funding hyperlink on the bottom right of the front page. Once you click this, you will be re-directed to a web page where you can submit your application.

If you submit an application electronically, we will be notified automatically via the premium funder.