RESOURCES - premium financing
Prospects

The characteristics of a premium financing prospects are:

• Net worth in excess of $5 million
• Large estate holder wishing to leave a legacy
• Significant insurance needs seeking to financing with little or no out of pocket costs
• Unwilling to liquidate assets to make policy payments
• Estate Tax Uncertainty
• Hedges insurability
• Generally in good heath

Traditional requirements are:

• A recourse loan used to finance premiums
• Personal guarantees from the borrowers
• Additional collateral, in excess of the cash value of the policy
• Annual collateral reviews