How to Finance an Insurance Book of Business

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Financing an insurance book of business always requires you to keep a few very important things in mind. Finance an insurance book of business with help from an accounting professional in this free video clip.

Part of the Video Series: Accounting & Finance
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Video Transcript

Hi, I'm Lori Greer from Atlanta, Georgia, and I'm here to discuss how to finance an insurance book of business. Trying to find a financing source for a new or expanding insurance agency can be very trying. The main thing commercial lenders look for is collateral. Most or the majority of lenders look for actual tangible assets. Of course with insurance agencies, it would be hard to find enough collateral to secure that large of a loan. So you have to set out to find a lending agency that specializes in financing insurance agencies and understands the behind the scenes of what makes them tick. Here's some steps that will help you. You will want to have a professional company look at the insurance book to determine the value. Next you'll need a business plan. You'll have to show the lender you have legitimate intentions in regard to the book. Also you will need to show them that you have knowledge and experience to successfully operate an insurance agency. At this point, you'll want to start looking for a lender. As mentioned earlier, normal lenders will want to see some sort of tangible collateral. For this reason, you'll want to look for lenders who specialize and work exclusively with insurance agencies. At this point after providing all your requested information, you'll receive several offers. You'll want to look closely at each of these offers to see which loan is best suited for your given situation. Again, I'm Lori Greer from Atlanta, Georgia, and that's how to finance an insurance book of business.


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