In light of forecasts predicting a growth in fee-based remuneration, finance providers Singer & Friedlander have highlighted the benefits of premium finance.
Chief Executive Ian Jerrum said: "Premium Finance is still very much a growing business and because it is still in its infancy, many brokers have not yet finalised its true potential.
"Brokers should look at every step of premium funding and negotiate with their providers and insurers to really benefit and keep profit margins up. The key to really making premium finance work is to choose a flexible provider.
"Brokers cannot afford to ignore the fact that by using premium finance they can show their true 'risk advising professionalism'."
With insurers' demanding payment within 60 days and finance houses transferring within 28 days, brokers have potentially 30 days of investment time.
The finance provider is advising brokers that the facility to pay their premiums in instalments will bring five benefits including; commission; investment; lower administration burden; bad debt protection; volume over-rider.
