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What’s Involved In Owning A Premium Finance Company
Premium financing is more than just making loans.
- Having the right people in place to set up and manage your premium finance company is essential.
- Timing is also critical – critical to keeping your company financially secure and to staying in compliance with the law.
Things to keep in mind if you’re looking at whether to run your own premium finance company in-house or outsource management to a third party.
PFC Item |
Self-Managed |
AIS-Managed |
Formation of corporation |
Hire attorney |
AIS handles |
State registration, license and filing |
Hire attorney |
AIS handles |
Staff with knowledge of premium finance laws and accounting, including return rates, spread, floats, expense ratios, ratio of debt to equity, ratio of debt to receivables as they relate to a premium finance company |
Find and hire
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AIS provides
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Software and hardware |
Purchase or license |
AIS provides |
Forms/supplies |
Create and/or purchase |
Electronic, paperless environment |
Training and technical support |
Purchase |
AIS provides |
Development of website and e-commerce capabilities for your premium finance company |
Build |
AIS provides |
Day-to-day management including data processing, billing, payment processing, correspondence, collections, accounting, reporting and customer service |
Find and hire staff
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AIS provides
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Overhead expenses |
Fixed |
Variable service fee that goes up and down depending on the amount you finance per month. |
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