Premium finance FAQ for insurance brokers

Premium finance allows businesses to spread the cost of their insurance premiums over monthly installments instead of paying the full annual premium upfront. This frees up working capital while keeping coverage in place.

Businesses of all sizes use premium finance, especially those with large commercial insurance policies. Independent brokers offer it as a value-add to help clients manage cash flow.

You submit your client's policy details to us. We underwrite and fund the premium, then your client makes monthly payments. The process is fast — most quotes are returned same-day.

Patch is currently licensed in Texas, Illinois, Florida, California, North Carolina, and South Carolina. We're actively expanding to additional states.

Patch is a premium finance company. We specialize exclusively in financing insurance premiums for commercial policies, working directly with independent brokers and their clients.

An arranger fee is a commission that brokers can earn on premium finance transactions in states where it's permitted. It's additional revenue on top of your standard commission.

We handle the heavy lifting. Our team manages the transition so there's no disruption to your clients or carrier relationships. Most agencies are fully onboarded within a week.

Digital applications, instant quoting, e-signatures, and a client portal for payments and account management. Everything is designed to reduce friction for you and your clients.

Clients can pay online through our portal, by phone, or by mail. We offer ACH and credit card options for maximum flexibility.

We work proactively with brokers and clients before any issues escalate. Our goal is to keep policies in force — we'll communicate early and clearly if a payment is late.

We typically finance policies with annual premiums starting at $2,500. If you have a client with a smaller premium, reach out — we're happy to discuss whether premium finance makes sense for them.

Patch finances Property & Casualty, Transportation, Professional Liability, and Commercial Real Estate insurance premiums. If your client has a commercial policy with a significant annual premium, there's a good chance we can finance it.

Most quotes are returned same-day, and loans can be funded within 24–48 hours of receiving a signed agreement and down payment. Speed is a core part of how we operate.

Nothing. There’s no setup fee, no monthly fee, and no cost to your agency. You get access to our platform, dedicated support, and the opportunity to earn arranger fees where permitted.