We are a Czech-Slovak insurance brokerage group of companies focused on company and business insurance (B2B) since 1993.We provide our clients with services through a stabilised team of qualified experts in all segments of insurance available in the insurance market.Based on that, the first they’ll want to know is whether you have the skills to manage a brokerage and will generally require you to have at least 5 years industry experience plus 3 years managing an insurance brokerage or underwriting business.
If the business is in the red, again, you may want to walk away but you also have to consider where there is an opportunity to turn things around.
Consider the following: the vendor is selling is crucial when buying an insurance broking business.
Do you need finance to buy an insurance broking book of clients or a commercial property loan to buy your own business premises?
With insurance premiums rising and a growing preference from individuals and businesses to use inurance brokers and underwriters, the industry has grown rapidly over the past few years.
So you’ve got management experience under your belt and you want to spread your wings and make a name for yourself in the insurance broking space?
Before even speaking to a bank or your mortgage broker about getting finance, it’s important that you find a practice that has strong fundamentals, has room to grow and best suits your skills and experience.This is usually a guarantee of gross fees for at least 12 month (although, ideally you’d want to negotiate for 2 years) with retention money held over for the period, that is, you would withhold around 10-15% of the purchase price.This retention clause may be higher depending on whether the insurance brokerage has a number of large clients that represent a concentration risk for the client book.With an insurance broking business loan you can plant your own flag.How much can you borrow to buy a portfolio and how do you qualify?Consider whether the portfolio you’re looking to buy best matches your skills and experience otherwise you could be in a situation where you can’t service the book. As a general rule, banks like to see the last 3 years business financials when consider commercial finance and you should do the same.Ask for ATO tax portals as well as profit and loss statements.If they don’t have these financials, it may sometimes be in your best interest to stay away from the sale.Of course, it may be that there accounts have simply been mismanaged.We have a strong relationships with a number of major banks and lenders and our mortgage brokers are credit experts so we know how to build a strong case so you have better chance of getting approved for an insurance brokerage business loan the first time around.We can also negotiate competitive business loan interest rates on your behalf and help you to borrow up to your maximum LVR by highlighting the strengths of your situation.