Premium Financing

Why is insurance premium financing better for your business

Why limit your agency to one premium finance company when we can have companies compete for your business? We have access to all markets, can place all coverage, and can customize program business and larger premiums.

Businesses credit is becoming harder to obtain these days and C3 makes it possible to not need to use credit to pay your insurance premiums. If you use premium financing you can free up your business line of credit for product development, hiring new employees, marketing or other investments to grow your business.

Premium simplicity, it just makes better business sense. Ask your insurance agency to provide a premium finance quote for your insurance coverage today.

How it works

Most quotes are available in minutes with no financial information required. Once you have signed an agreement, which can be done electronically in some states, you can pay by mail, phone, fax, our secure internet site, or pre-authorized account debit.

We offer premium financing expertise, so you can go back to running your business knowing that you are fully insured with capital to help it grow.

Our customized payment plans offer financial flexibility so your company’s capital works harder. Secure application of technology protects your information and payment accounts.

How does insurance premium financing work

The process of funding is as follows:

  • The insurance agent/broker binds a policy for a business and then requests from the business a down payment of 25% of the full policy amount.
  • The remaining amount is then financed through Common Cents Capital.
  • The policy maker signs a security agreement the assigns power of attorney to Common Cents Capital. This allows us to cancel the policy at any time.
  • The policy holder then receives payment coupons that are due thirty days from the initial policy date. Because the policy has been prepaid for a total of 90 days in advance and the first payment is within the first thirty days the policy holder is always paying in advance.
  • The process of cancellation begins when the policy holder is fifteen days late. The first item is that the policy holder and the insurance company are notified as to the intent to cancel the policy. The holder has an additional 15 days to pay the past due financed amount.
  • If the past due amount is not paid, within the fifteen days, then a cancellation notice is sent to the insurance company and the policy holder. The insurance company then refunds the unearned insurance premium.
  • Since the policyholder has been prepaying the policy the unearned premium is in excess of the amount that was originally financed. The finance rates vary for each policy the rates vary from a 9.99% to a 12.99% rate depending on the credit worthiness of the policy holders.
  • There is a fee of 2% for the initial setup and management of the policy financing agreement.

∗ The historical net returns to the fund have exceeded 10%.