Refinancing Debt Can Save You Money

The goal of any independent insurance agency is to grow and build long-term wealth. To reach a point where they can fund growth initiatives and make money, owners often need to secure capital via specialty loans, liquid investments, seller finance or funding from friends, family and other supporters. This can lead to debt on terms that are less than ideal, including interest rate, loan term or both.

If you’re an agency owner with a steep repayment plan on your business debt, you may feel like you’re never going to generate the kind of cash flow to meet your agency’s needs, extinguish debt and experience the growth you dreamed of when starting your company.

Consider this case study of an owner who refinanced for positive cash flow. Cash flow is the backbone of any agency. It may have been prudent and necessary to take out loans, seek investments or otherwise bring outside money into the company to get off the ground—but don’t let repaying those debts prevent you from actually taking off. When considering the obligations you need to pay back, think about how much extra money you’ll have once your monthly payments are off your plate.

Can you afford to hire the producers you need? Are you meeting the demands of your customers? Are you ready for an acquisition? Or are these payments holding your agency back? If so, you may need to consider restructuring your debt in order to reduce your monthly payments. Use Live Oak Bank’s simple online calculator to get a glimpse of the potential monthly, annual and lifetime savings when you refinance your agency loan.

Head online to learn how to refinance your debt, significantly decrease your current monthly payments and see your agency grow.

Kelly Drouillard is the general manager of the insurance lending division at Live Oak Bank. Contact her at 913-980-7773.