It is the first time the broker has sought external funding since it was set up in 2011
Broker Principal Insurance has secured a £250,000 loan from Yorkshire Bank to support its growth plans.
The Manchester based broker will use the capital to help boost its marketing activity, invest in new technology and recruit additional staff.
The broker which had previously been funded solely through its own resources places more than £3m in gross written premium.
It specialises in motorcycle, scooter, van, trade and classic and modified car policies. The broker has 17 staff.
Principal chairman Damian Keeling said: “Whilst our previous growth has undoubtedly been impressive to break through to the next level, to really shake up the markets in which we operate, we needed additional financial support.
“Yorkshire Bank clearly recognised the strength of our business plan and the experience and expertise within the business which is driving Principal forward at such a pace. We’re delighted not just to have secured this significant funding but the vote of confidence from the bank that it signals.”
The funding was arranged through Yorkshire Bank’s business and private banking team in Manchester.
Director Neil Farrell added: “Having been impressed by Principal Insurance’s performance over the past three years or so, we can see the enormous potential inherent within the business.
“There is a clear strategy for growth and the necessary experience and expertise at the top to implement it. Yorkshire Bank is pleased to assist in the fostering of future expansion of what looks to be one of the North West’s more exciting business prospects.”
Principal was set up by managing director Dave Bowcock who previously spent seven years at RAC Insurance Brokers. Prior to that he had spent 14 years at Carole Nash.