Insurance Agency Lending May Have Just gotten easier for Independent Agents
We receive several calls weekly from agencies asking about loans for insurance agency acquisitions, debt consolidation or to hire producers and grow their book of business. We usually refer agency owners to their local bank first to see if there’s a way that SBA would loan them money. Often times SBA doesn’t understand the insurance business since there is minimal equipment, no inventory and runs unlike most businesses in the world. We recently found a great source for lending that has a conventional loan based on the gross revenue of your agency. The terms are outstanding with 10 year pay-outs and the interest rates are very reasonable. The minimum loan amount is
$100,000 with funds up to $1,000,000 available. The firm recently closed a 1.5 million dollar transaction, so while there are parameters of 100K – 1 million, exceptions can be made. Applying is fairly easy and there’s a 10-day approval process. The approval process is based on credit and gross revenue. Once approved, loans are funding in as quickly as 30 days.
So, if you’re interested in finding out about this insurance agency lending program, please fill out our contact form or call us @ 800.528.1325. We’ll be more than happy to tell you more about it and help you get the process started.