How Does Our Loan Process Work for Insurance Agency Loans?

How Does Our Loan Process Work for Insurance Agency Loans?

To help us better understand your unique situation and provide the best financing option, we really want to get to know you and your agency. We will gather the following information:

History of Business

We will get to know your business better by reviewing the following:

  • Ownership composition
  • Years in business
  • Key employees
  • A mix of business between business/personal lines
  • List of top carriers by commission and contingency volume/history
  • List of top 10 customers by the gross commission
  • Gross commission history by location for last five years
  • FTEs broke down by sales and support staff
  • History of agency acquisitions

Economic Outlook

The current economic situation also will be considered. We will review:

  • Consumer and business spending trends
  • Corporate profit trends
  • GDP trends and future outlook
  • Employment trends and future outlook
  • Inflation trends and future outlook
  • Housing trends and future outlook
  • Insurance industry outlook, including P&C outlook across the US and by region and commercial policy pricing trends

Valuation Analysis

To accurately valuate your agency, we will consider different approaches that consider gross commissions, cash flow, and future expected earnings.