Are you a Captive Allstate Insurance Agent? Probably, you’re looking for some reliable sources of fresh capital to grow your business. Well, in this situation, it is first important to understand what potential sources an Allstate Insurance Agent may utilize to get a loan for their business.
The article below will help you learn about some of the best funding products for Allstate Insurance Agencies as well as about how the available loans can be used.
What are Allstate Insurance Agency Loans?
An Allstate Insurance Agency Loan is a lot like a normal small business loan that can be used to expand an Allstate book of business. It is important to have reliable working capital to avoid cash flow problems. There are many reasons an insurance agency might be struggling with cash flow related problems; a few of them are:
- Failure to maintain a healthy budget.
- Over-leveraged owners of the agency.
- Unpaid “withholding” taxes.
- Over-invested agency.
- Over-leveraged agency.
In order to ensure longevity and profitability in the business, it is important to establish proper cash flow. While you may be able to increase cash flow by cutting cost, it is difficult to grow an agency without the working capital required to properly train, market and prospect new clients. An insurance agency loan from McQue Capital can serve you better to achieve your goals by reducing your existing debt payments and allowing you to invest more into your agency.
How you can use available funds?
Once your insurance agency has been approved for a loan, the available funds can be used for agency acquisitions, agency expansion plan, debt refinancing or as working capital. This money can be also used to hire new agents, buy essential equipment, marketing and paying vendors. Once you are able to manage your cash flow, it becomes easier to handle current expenses while developing growth plans for the future.
Why you should not look for traditional lenders?
The chances are that your Allstate agency has built a great reputation in the market and your financials are solid; still, your loan often will still not get approved by the bank. It’s not because insurance agencies are high-risk businesses but rather traditional bank often don’t understand cash flow lending or that an Allstate Agent’s book of business is one the most valuable assets they own. Unlike other insurance agents, Allstate Agents have much less potential financial failure due to the resource that Allstate provides them.
Still, Allstate Insurance Agents often find themselves with limited options for funding. Even if a bank agrees to provide funds, you may have to follow strict terms and conditions that are unrealistic based on your commission and bonus structure. You will most likely also have to pledge your personal assets (e.g. primary residence) as collateral for the loan and risk losing it should you fall behind on your payments.
This doesn’t mean that you cannot find opportunities to grow your Allstate Agency. It is possible to take get help from some alternative lenders that specifically lend to Allstate Insurance Agencies.
Apply for an Allstate Insurance Agency Loan Now:
The team of experts at McQue Capital is here to offer you alternative options for taking your insurance business to a whole new level. We can use the existing equity in your Allstate book of business as collateral for your loan so you don’t have to risk any of your personal assets. Even if you don’t have good credit or there is no credit history; we offer a business loan that will help increase your cash flow without affecting your personal credit score. Visit www.McQueCapital.com or email us at [email protected] to learn more. You can also give us a call at 877-432-7030 or message us on Facebook or LinkedIn