- 977
Talked with a premium finance guy this week - I'm on the fence in regards to doing this. South Carolina is a state that allows me to charge fees - policy fee, transaction fee for payments, etc. etc. I haven't been taking full advantage of this, and I'm in a nonstandard-heavy part of town. I'm mostly interested in hearing from anyone currently using premium finance for NSA - like it, don't like it, would you do it again?
For those not familiar with it, doing premium finance for NSA would allow more flexible terms as far as payments, while rolling my fees into the finance agreement so it's MUCH simpler to charge them to clients. In most cases, the due dates would either be the same or later than the dates the carriers are setting. The due dates some of these nonstandard carriers have tend to confuse people. Another plus is they actually call late accounts, which is one less thing I'd have to worry about. The finance company makes their money on the billing fees that the clients are already being charged by carriers anyway (no interest), so it doesn't cost them anything extra. Plus I can finance add-ons like motor club, AD&D, etc. The way I figure it, it'd create an additional 500-1000/mo in revenue, but would create additional paperwork for me and the late/reinstatement fees are more than what some of my carriers charge (but would be the same as what some other carriers are currently charging, so it would be no change for some clients, and a small increase for others)
Thoughts?
For those not familiar with it, doing premium finance for NSA would allow more flexible terms as far as payments, while rolling my fees into the finance agreement so it's MUCH simpler to charge them to clients. In most cases, the due dates would either be the same or later than the dates the carriers are setting. The due dates some of these nonstandard carriers have tend to confuse people. Another plus is they actually call late accounts, which is one less thing I'd have to worry about. The finance company makes their money on the billing fees that the clients are already being charged by carriers anyway (no interest), so it doesn't cost them anything extra. Plus I can finance add-ons like motor club, AD&D, etc. The way I figure it, it'd create an additional 500-1000/mo in revenue, but would create additional paperwork for me and the late/reinstatement fees are more than what some of my carriers charge (but would be the same as what some other carriers are currently charging, so it would be no change for some clients, and a small increase for others)
Thoughts?
