Business Finance Book –

SSpecialty financing you’ve probably never heard of

This may be an option if your business needs financing

An innovative solution can be offered to insurance agents looking for financing to buy a new agency or improve an existing agency. A business book can be an option for obtaining financing.

What is a business book?

An agent’s book is a list of clients or accounts. This should contain all clients/clients an agent has worked for in the past. As relationships develop, new information is added.

A business volume can contain revenue generated by the customer, basic demographics like occupation, referrals (if any) and future needs.

You can also use your insurance book to obtain long-term, low-interest financing through rolling commissions. Agents should verify their eligibility with their brokers or franchisors.

Traditional lenders like big banks tend to require material and tangible guarantees. Independent agencies rarely have sufficient collateral to obtain a loan large enough for their needs. You should find a lender who specializes in financing insurance companies who understands the importance of a book.

What is the Business Funding Book?

To determine the right price for your business, have it appraised by a professional. The average sale price of books in the industry is between 2 and 4 times the annual income. It is good if more than one business valuation is done. Results may vary as each company uses different standards. These differences can have a significant impact on the loan amount, fees and repayment terms.

  • Lenders rely on the appraisal to assess the strength of the business portfolio.
  • Prepare a business plan. Demonstrate to the lender that you have the experience and knowledge to run a profitable agency. A business plan that addresses all the potential issues you may face and clearly shows how you intend to maximize the profit potential of your new asset should be well written.
  • Find specialty lenders who only work with insurance agency owners. A specialist lender will recognize the power of big business books and help you secure your loan.
  • Compare all loan offers to find the one that suits you best.


To determine whether an agency can continue to earn consistent commissions from existing clients, lenders consider cash flow and business mix.

The more varied the book will be across agency clients, lines of business and insurers, the more favorably it will be viewed by specialty lenders.

Insurance agencies have reliable cash flow because they provide a service that individuals and businesses have depended on for years. Because they are based on ongoing commission income, revenue and cash flow can be predicted.

Maximizing agency value means investing effectively in the business and reducing unnecessary expenses. Agency operations that are efficient will be preferred by lenders who understand insurance.

However, business volume is collateral that secures the loan and can be lost if the loan is defaulted.

Discover the benefits

To qualify, you will need a book of business with recurring commissions. Business volume can be used as collateral for a loan to purchase an independent insurance agency. Even if your credit score is not the best, you can still be approved. Lenders want to make sure you have a stable source of income for your agency.

Take away key

Business finance book is a good way to use a valuable asset. It can be used to buy an agency or get funding to improve it. While a business book can be valuable, different ratings can yield different results.