Insurance companies must prioritize growth to survive in this increasingly competitive industry. But for many young or small agencies, there’s no easy path to the structures and resources required for expansion.
New business, for example, is among the most important drivers of organic growth. Agencies must devote substantial time to generating new client relationships and addressing their individual needs. But neither is possible without the ability to recruit additional salespeople and maximize exposure to your target clientele. Significant technology investments may be necessary for serving certain accounts, especially when you consider the myriad innovations that currently stand to disrupt the traditional broker model.
In addition to improving sales and advertising, consolidation is likely on the horizon for any agency looking to put their stamp on the marketplace. Owners have concluded that size matters and are trying to enlarge their agencies as quickly as possible. Acquisition is becoming a highly sensible option for agencies that wish to invest in the next generation of leadership and don’t want to relinquish control by being bought out.
United Capital Source has many years of experience facilitating Small Business Loans for Insurance Agencies. We have access to all types of business lending products. Contact us today for your FREE business funding consultation!
At United Capital Source, we are well-aware that even the most successful insurance agencies have had their share of ups-and-downs, typically because of economic downturns. Banks might be troubled by notions of tumultuous cash flow or previous credit issues, but this likely will not impact your application at UCS. We have access to business loans designed to tackle the insurance industry’s numerous common problems and help you move forward with growth-related investments.
Hiring salespeople is often a concern for today’s agencies because new hires need to be trained and likely will not begin to finance themselves for several months. A similar dilemma applies to marketing and technology, both of which may take time to contribute income. But with a correctly timed working capital loan, you could increase sales staff or launch a marketing campaign without worrying about how you’ll offset the heightened expenses and temporarily unrealized revenue.
These business loans can be used for more conventional purposes as well, like upgrading facilities or technology. We specialize in providing the means to meet demand increases, whether they be gradual or sharp and unexpected.
Since growth and sales go hand-in-hand in the insurance industry, agencies will likely benefit from our various working capital loans featuring sales-based repayment systems. With a revenue based business loan, substantial payments are only made when sales volume increases. The absence of fixed monthly payments immediately after distribution allows agencies to spend as much time as they need courting new clients while covering regular business expenses.
Despite inevitable fluctuations in cash flow, insurance companies must perpetually recruit salespeople and pursue new business. This is why most of our business loans do not require perfect cash flow, nor do they inhibit borrowers from concentrating on what they do best. Once funding is distributed, you have all the freedom to market yourself and generate sales without being excessively burdened by debt. Apply now to see how much you qualify for!
| LOAN TYPES | MAX AMOUNTS | RATES | SPEED |
|---|---|---|---|
| Merchant Cash Advances | $5k – $1m | Starting at 1-6% p/mo | 1-2 business days |
| SBA Loan | $50k-$5.5m | Starting at Prime + 2.75% | 8-12 weeks |
| Business Term Loan | $10k to $5m | Starting at 1-4% p/mo | 1-3 business days |
| Business Line of Credit | $1k to $1m | Starting at 1% p/mo | 1-3 business days |
| Receivables/Invoice Financing | $10k-$10m | Starting at 1% p/mo | 1-2 weeks |
| Equipment Financing | Up to $5m per piece | Starting at 3.5% (SBA) | 3-10+ business days |
| Revenue Based Business Loans | $5K – $1m | Starting at 1-6% p/mo | 1-2 business days |
