A quick guide to how premium finance works, what it means for your agency, and why your clients will thank you for offering it.
Here's how it works — from placing the policy to earning your fee.
Bind the policy and quote the full annual premium — business as usual.
Send us the policy info and premium amount. Most submissions are approved within hours — not days.
Your client reviews the payment schedule, signs the agreement, and makes their down payment.
Once signed, Patch pays the insurance carrier directly. Your client's policy is active and fully in force — typically within 24–48 hours.
Payments are spread across the policy term — usually 9 to 10 monthly installments. Your client's cash stays in their business.
In states where arranger fees are permitted, you earn a fee on every financed policy. It's new revenue on business you're already writing.
It's a win on both sides — better cash flow for your clients, and a new revenue stream for your agency.
Close larger accounts. Retain clients who might otherwise lapse. And in states where arranger fees are permitted, unlock a new revenue stream — without changing the way you sell.
Your clients keep their cash in the business. Monthly payments instead of one large check. Full coverage from day one. Fewer awkward conversations about lapses.
If your client has a commercial policy with an annual premium, there's a good chance it qualifies.
Property & Casualty (GL, commercial property, umbrella)
Transportation & commercial auto (trucking, fleet)
Professional Liability (E&O, D&O, cyber)
Workers' Compensation
Commercial Real Estate & builder's risk
Surety bonds (in select cases)
Patch finances policies with annual premiums starting at $2,500.
Don't see your client's line listed?
Revenue on business you're already writing — no extra selling required. In states where arranger fees are permitted, this is one of the biggest reasons brokers offer premium financing.
That's $18,000 in new annual revenue on policies you're already placing. A single large account with a $30,000 premium at 3% generates $900 per year.
Rules vary by state — some allow uncapped fees, others set limits, and a few don't permit them at all. Patch handles compliance so you know exactly what you can earn.
Premium finance costs money — that's the honest part. The question is whether your client's working capital is worth more than the finance charge.
One payment, done. No finance charge. If your client has the balance sheet to absorb it, this is the simplest path.
A down payment, then monthly installments. Full coverage from day one. The rest stays in the business — available for payroll, equipment, or the next opportunity.
It's a trade-off. For clients with cash to spare, paying in full is easy. For clients who need that capital working, the decision is just as clear. Your job is finding them the best rate — and with Patch, you will. In states where arranger fees are permitted, you earn on the deal too.
Some premium finance companies lock you into exclusive agreements. Some take days to fund. Others charge setup fees or bury the terms. Here's what to look for:
Fast funding — 24–48 hours, not a week
No setup fees, no monthly fees, no cost to your agency
Non-exclusive — use Patch alongside any other provider
Transparent rates and terms — no surprises for you or your client
A real team that picks up the phone — not a portal with a ticket queue
There are no setup fees, no long-term contracts, and most agencies are onboarded within a week.
If that sounds right, we'd love to talk.
Send us a message and we'll walk you through everything.
