Singer & Friedlander CD-Rom calculates best finance option
Singer & Friedlander Insurance Finance is launching a CD-Rom that allows brokers to calculate the cost of premium finance compared with other finance methods.
Managing director Ian Jerrum said the CD-Rom, which took six months to develop, would be launched at the British Insurance Brokers' Association (Biba) conference in April.
He said the traditional view was that premium finance was for those who could not afford the premium outright, but in reality many "financially aware" companies used premium finance as a way of putting their money to work.
"It can often work out cheaper for a client to have premium finance than to pay up front because they get tax relief and they're able to invest the money they have not spent on the insurance premium to get a return higher than the finance costs.
"We've produced a CD brokers can use to put in the premium amount, the finance charge, what they could earn if they invested the money, then press enter and receive a print-out that will tell the client the true cost ."
He said the CD-Rom was produced in response to requests from brokers, whose clients were often sceptical it could be cheaper to use financing.
"A number of brokers said they were convinced of the worth of premium finance, but needed something to convince their clients."
Jerrum said no other premium finance offered the same sales tool.