How Much Capital Do I Need To Fund The Loans If I Finance $100,000.00 Or More A Month In Commercial Lines Premium?
One hundred thousand dollars ($100,000.00) per month in commercial lines financing should create an earning receivable asset base between $400,000.00 and $450,000.00
You would need between $300,000.00 and $350,000.00 to run your “Own Your Own”® premium finance company
To fund those loans, you would need between $400,000.00 and $450,000.00 MINUS the “float” that is typically seen in affiliated premium finance companies
That “float” is/maybe as much as an amount equal to one month’s financing
These funds come from:
your investment as the owner and
as may be required by statute and
leveraged/borrowed capital
You will be able to handle virtually any dollar amount that you can finance without investing any money in excess of your original capital investment - assuming a typical one-month/thirty (30) days float
