Sales director says move comes ’at a time when finances are under considerable pressure’

Premium Credit is offering a finance facility to insurance brokers to help them spread the cost of their FCA fees, a statement released yesterday (20 July 2023) said.

The firm said the facility will allow brokers and wider regulated firms to make repayments over the course of around 10 months instead of one lump sum.

In turn, this will let them ”spend precious cash reserves in other business critical areas”, Premium Credit said.

The FCA invoices authorised firms and other related bodies for fees from July onwards each year. 

Where total fees exceed £50,000 in the previous year, the FCA will request 50% of that fee.

“Our credit facility remains a cost-competitive and convenient means for regulated businesses to pay their FCA fees over monthly instalments,” said Nigel Stewart, sales director for sports, professions and leisure at Premium Credit’s specialist lending division.

“At a time when finances are under considerable pressure, it can be a strong alternative compared to other forms of credit.”

Financial penalty

Premium Credit provided the financing option to over 2,000 regulated businesses last year.

The business said it was best for firms to act in a “timely way” when looking to pay FCA fees to avoid financial penalties for a late response.

Stewart added that the facility is a “simple digital application process” and, as a lender, Premium Credit undertakes the “bulk of administration”.

“With years of significant investment in technology, we ensure the whole customer journey is a smooth, seamless process,” he said.