Looking for capital resourses, line of credit, securutization to start or grow a insurance premium finance company? Need a business plan?

Many have contacted us on where to borrow money to start or expand their insurance premium finance company.

We have created a guide on how to get a line of credit for an insurance premium finance company.

For banks, we can provide a premium finance profit calculator pro forma so that you can show potential profit. Designed for those who lend to the premium finance industry. Allows capitalizing on financial strength and mix of business.

Evolution has a Remote Audit Tool™ (RAT), software designed specfically for the bank suppling the accounting transactions needed to monitor the line of credit. Connection is firewalled with limited read only information into a premium finance company database for managing the line of credit and audit purposes.

Topics in the proposal / loan application to the loan officer include:

• Overview of the project or purpose of the loan
• Financial statements (balance sheet, income statement, cash flow statement)
• Business plan or project description
• Details of collateral (if applicable)
• Proposed repayment plan
• Use of funds
• Credit history and personal financial information (for individuals)
• Supporting documents (licenses, permits, contracts, etc.)
• Legal documents (articles of incorporation, partnership agreements, etc.)
• Any other relevant information or attachments

This will allow you to show a bank or other lender you know what you are doing and worthy of a line of credit then present a serious proposal.

Unraveling Bank Lines of Credit.

A bank line of credit—a flexible financial lifeline for businesses and individuals alike—operates within a structured accounting framework. Here’s why full debit-credit accounting is essential in this context:

Understanding Line of Credit: Debit-Credit Accounting

1. Understanding the Basics:

   • A line of credit provides access to funds up to a predetermined limit. It is like having a financial safety net that you can dip into when needed.
   • Debit-credit accounting ensures that every transaction—whether drawing from the line of credit or repaying it—is accurately recorded.

2. Recording Drawdowns (Debits):

   • When you tap into your line of credit, it is a debit. You are increasing your liability (the amount owed to the bank). Debit entries capture the specifics: the date, the purpose and the amount drawn.

3. Tracking Repayments (Credits):

   • As you repay the borrowed amount, it is a credit. You are reducing your liability. Credit entries document the repayment date, interest accrued, and any fees associated with the transaction.

4. Interest Accrual and Payments:

   • Debit-credit accounting tracks interest accrual on the outstanding balance. Interest expense is a debit, while interest payments are credits. This precision ensures accurate financial statements and helps manage interest costs.

5. Monitoring Available Credit:

   • Debit entries reduce the available credit, while credit entries increase it. Regular reconciliation ensures that the available credit aligns with the agreed-upon limit.

6. Risk Management and Compliance:

   • Full accounting provides transparency. Banks monitor credit lines closely to assess risk exposure.
   • Compliance with regulatory guidelines demands accurate recording of all credit-related transactions.

7. Cost Savings Over Time:

   • Precise accounting reduces errors, prevents overdrawing, and minimizes interest miscalculations.
   • Efficient tracking of credit utilization helps manage interest costs effectively.

In summary, debit-credit accounting is not just about numbers; it’s the heartbeat of responsible credit management. Whether you are a business owner or an individual, understanding this dance ensures financial harmony.

Since 1979, we've led the pack in high performance enterprise solutions for the premium finance industry. By staying ahead of emerging technologies we have become empowered to go beyond just servicing our client base to improving their position in the marketplace.

Call today 913-384-2654 or email.