Premium finance will remain open
Close Premium Finance, the leading premium finance provider to the insurance industry, has reconfirmed that premium finance remains open and available to brokers’ clients and potential clients, despite the global credit crunch currently impacting financial markets.
Tim Wilson, Sales & Marketing Director at Close Premium Finance, said: “As our clients will no doubt be aware from the press coverage, problems in the US sub prime mortgage market have led to banks across the world being reluctant to lend to each other. As inter-bank lending is the source of funds for much business and personal lending in the UK, both companies and individuals are finding money harder and more expensive to borrow.
Due to the way our parent company Close Brothers is funded, we remain in a very liquid and strong financial position. The Group has no exposure to US sub prime debt.”
“That’s why we wanted to take this opportunity to publicly confirm to our brokers that at Close, our finance remains available instantly to fund installments, without the onerous conditions attached to borrowing that have been introduced by some other lenders in the market.”
”Furthermore, in these turbulent times for the financial markets, we believe that, for many entities in the market, the flat rate lending of premium finance now looks even more attractive when compared against bank lending rates. Indeed, we’re already seeing a number of clients coming to us that are looking to use flat rate lending to relieve pressure on their other funding lines
Beyond the usual benefits of premium finance, brokers can now add some real value to clients not currently using it by identifying a highly economic additional line of credit.”
