Insurance premium finance has the potential to have a positive effect on working capital and cash flow. It achieves this by enabling policyholders to spread out their insurance premium payments over a period, instead of an immediate lump sum payment. This approach can release funds that would otherwise be locked in insurance expenses, offering individuals and businesses greater financial flexibility and management.

What is Insurance Premium Financing?

Insurance premium finance is like a money tool that helps people and businesses pay for insurance over a period, rather than all at once. It’s handy when you don’t have enough money upfront.

Usually, a separate company, like a bank, gives you the money for your insurance. You then pay them back bit by bit, usually each month, along with a bit more for interest and fees.

Benefits of Insurance Premium Financing 

Here’s why both businesses and individuals prefer insurance premium finance:

1. Improves cash flow: This is achieved through the elimination of the need for a substantial initial payment. This results in the availability of a lump sum that can be strategically allocated to other areas of the business, thereby finding a way around the necessity of converting other assets into liquid form.
2. Ensuring comprehensive coverage: Avoiding the temptation to compromise on insurance quality due to initial costs, especially when dealing with increasing renewal premiums for businesses.
3. Versatility: You can link several insurance policies to one premium finance agreement, enabling a unified payment plan and direct debit. Alternatively, you have the option to finance a portion of a single policy. This ensures businesses can meet their in-year budgets even when facing higher premiums.
4. Financial Flexibility: By accessing funds from the premium finance lender, customers can retain and reinvest their capital in the business, without impacting the balance sheet.

How can Shimin Insurance Premium Financing help your business?

With us, we cover your insurance expense upfront to your insurance provider. Your business then reimburses us through monthly installments over an agreed period.

We offer flexible repayment periods from 3 to 10 months, and financing options range from a minimum of KES 20,000 to a maximum of KES 400,000.

The IPF loan operates through a tripartite agreement between you, the insurance company (as guarantor), and Mwananchi Credit Limited (as financier).