| Who is the perfect candidate for a premium finance captive? |
- Any company that originates at least $500,000 in annual premium finance loan volume.
- Any company that has control of a select renewal client base.
- Any company that desires to maximize profit from current premium finance volume.
- Any company that is ready to take control of premium financing.
- Any company that wants to enjoy the pride and flexibility of direct ownership.
- Any company that wishes to enhance its client retention.
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| What risk is involed in forming and owning a premium finance captive? |
| The risks of a Captive Premium Finance company are primarily determined by the down payment collected and the insurance carriers whose policies are financed. As long as the proper down payment is collected and the polices financed are through viable carriers, the risk is minimal. Another risk mitigating factor is that the policies financed are part of a book of business that you are familiar with and that you control. |
| How much additional workload is required for running a premium finance captive? |
| The work required to generate financing for your premium finance captive is no different that your current output for setting up financing through traditional sources. If anything, we lessen the burden through integration withy your agency management system. As your Premium Finance Captive Partner, Mountain West Financial, LLC handles 100% of servicing for your loan portfolio. |
| What are the cost associated with a premium finance captive? |
| The initial capitalization amount is determined by each state individually. Mountain West Financial will charge a nominal fee for company set up and procurement of state required license. The service and software expense, and the cost of funds (if applicable) are folded into the APR on the premium finance contract. |
| What kind of APR needs to be charged in order to be competitive and profitable? |
| A Captive Premium Finance company is able to capitalize on late charges and funding float, which allows the company to offer a competitive APR while increasing premium finance revenues. Bottom line, it is your premium finance company and you have the ability to set the rates that are going to accommodate your profit requirements. |
