Premium Credit has beaten its rival Close Premium Finance in two deals.

The finance company, which spreads premium payments, will be sold by Spectrum, the 3,000-strong broker network organised by HSBC Insurance Brokers.

The agreement guarantees Premium Credit access to 4,000 customers.

It has also become the premium finance provider of choice for the British Insurance Brokers' Association (Biba).

The Biba deal lasts for three years and gives Premium Credit access to the association's 2,000-plus brokerage members, which together transact more than two-thirds of the UK's general insurance business.

Premium Credit sales and marketing director Simon Moran said: "These two new partners will help us in our objective of becoming the first £2bn premium finance company in the UK."

Biba had previously recommended the services of Tifco Europe, which was bought by merchant bank Close Brothers in December and merged with its existing premium finance operation, Prompt.

Prompt is now known as Close Premium Finance.

Biba spokeswoman Jennifer Weller said: "Close Brothers wanted to change the terms of the agreement. We didn't feel it was beneficial to our members."

The deal with Premium Credit was clinched last week.

The company's sales and marketing manager, Simon Pearce, said: "In terms of the insurance industry there's nobody to compare to Biba."

The company could not reveal how much business it expects to win as a result of the deal, but Pearce said there would be both direct and indirect benefits.

"The Biba endorsement is massive but it's also far-reaching because of the kudos it gives us among non-Biba members as well."

The agreement with HSBC Insurance Brokers makes Premium Credit its exclusive provider of premium finance.

The services, which have been tailored for the deal, will be controlled and sold by HSBC Insurance Brokers under the Spectrum name. It is understood to be a long term agreement.

HSBC declined to comment.

Premium Credit expects to advance about £1.5bn to insurers next year. It has more than 1.6 million insurance finance agreements and makes at least 60,000 direct debit collections a day.

Close Premium Finance expects to advance £1.4bn to insurers next year.