The idea behind the C3 is simple
The concept of forming Common Cents Capital, LLC (“CCC”) is to provide a funding source to business owners and individuals who need or want to finance their insurance premiums.
Often times business owners or individuals choose to spread the cost of premiums over time rather than to pay the entire premium up front. There is a number of business and personal reasons a policyholder may choose to do this. This creates a need for a funding source, like CCC, that understands the insurance business and the lending business which can provide the needed funds to the policy holder.
The process works like this: CCC manages the Company funds derived from its investors and puts those funds to work as quickly as possible, securing a loan made to a policy holder to pay his/her/its future insurance premiums.
Most of the premiums range in value from $25,000.00 to $150,000.00. The types of insurance policies vary from large transportation company policies, personal property liability policies, to general commercial liability policies.
- The insurance agent/broker binds a policy for a policy owner/business and then requests that they make a minimum premium down payment of 25% of the total annual premium.
- The remaining amount is then financed through Common Cents Capital, LLC (“CCC”).
- The policy maker signs a security agreement which assigns power of attorney to CCC. This allows CCC to cancel the policy at any time.
- The policy owner then receives payment coupons which are due thirty days from the initial policy date. Because the policy has been prepaid for at least 90 days in advance and the first payment is due within the first thirty days, the policy owner is always paying the next premium ~60 days in advance. The prepaid premiums constitute tangible equity in the policy.
- If the policy owner is fifteen days late to make the next premium payment, CCC begins the process of cancelling the policy. The first action is to notify the policy owner and the insurance company of CCC’s intent to cancel the policy. The policy owner is then given an additional 15 days to pay the past due financed amount.
- If the past due amount is not paid, within said 15 days, then CCC submits its cancelation notice to the insurance company and copies the policy owner of said final notice.
Since the policy owner had been prepaying the policy premiums the sum of the unearned premium remains in excess of the amount which was originally financed. The interest rate charged to the borrower/policy holder varies for each type of insurance policy. Generally, these rates can vary from ~9.0% to ~12.0% annual rate depending on the credit worthiness of the policy owner. There is an additional underwriting fee of 2% for the initial loan setup and management of the policy financing agreement which the policy owner also pays CCC. The historical net interest rate returns to our investors range from ~7% to ~9%.
Additional underwriting fee of 2% for the initial loan setup and management of the policy financing agreement which the policy owner also pays CCC. The historical net interest rate returns to our investors range from ~7% to ~9%.
Marketing Plan and Sales Strategy
Our marketing and sales strategy is simple, tell people what we do, deliver what we promise, month after month and year after year and the word will soon get out. We will post our information package on-line and will mail out a packet to all who inquire. Our website is available for everyone to access and will be fully optimized. We will also provide our clients bi-annual reports and updates of performance via email and soon an on-line portal to access.
Please read through the “How it works” to see how C3 can go to work for you and help supplement your financial strategy.
C3 is here to build long term, life long even generational relationships with both it’s investors, insurance agents and lendees alike. This is not for someone who is looking for a get rich quick scenario, we’re here to provide outstanding service while delivering a strong rate of return that could create a great foundation to anyone’s long term financial plan.
For our affiliate agents we will always strive to improve and streamline our processes to help improve your productivity and profitability alike. If while anyone using our system can suggest ways for us to better improve our service to you, we will always stop and listen and try to apply your ideas.
The C3 Team
Weldon Wulstein – Co-Founder and Partner
Roman Kreminski- Co-Founder and Partner
Stefan Laursen – Partner