’This guide helps to explain how premium financing works,’ says chief executive

Biba has launched a new guide for members that arrange premium finance for customers.

Announced during Graeme Trudgill’s Biba Conference address, the guide aims to help members demonstrate fair value on the work they do as credit brokers when arranging premium finance.

“Premium finance helps customers who, for whatever reason, prefer not to pay their premiums up-front, however there are costs to doing this,” chief executive Trudgill said.

“This guide helps to explain how premium financing works and why customers may need to pay more to spread their payments.”

Regulation

The guide is available to Biba members online.

It also highlights brokers’ regulatory obligations, including what needs to be disclosed regarding premium finance.

David Sparkes, Biba regulation director, said: “We wanted to give members the confidence to show that they are offering fair value to their customers when suggesting premium finance products.

“We hope that once customers understand the costs incurred by the lenders in offering the finance and the work done by the broker in offering and managing the service throughout the life of the loan, they will see the value such arrangements bring.”