News hub

Managing debtors efficiently: the benefits of premium funding

Admin — Thu, 26 Sep 2024 14:00:00 GMT

We hear first-hand the increasing challenge that businesses face with cash flow and getting paid on time.

Average debtor days are rising in most industries, with insurance proving no exception.

So, it’s encouraging to see how well-prepared brokers are for this environment.

Many already take a proactive approach to managing their invoicing. Often this includes a deliberate focus on their premium funding portfolio. This eases financial pressures for clients and boosts efficiency in their own business.

The outlook for business conditions in the short to medium term can be grim. So, it's time to rediscover how premium funding can benefit your clients and your business.

Working smarter this EOFY

Admin — Thu, 30 May 2024 14:00:00 GMT

There are few times in a year that can create as much stress for businesses as the end of financial year.

It’s a mad rush to tidy up finances, get paid (and pay) invoices, and prepare, compile and present reports and budgets. Businesses must then be ready the very next day for the new fiscal year.

It’s a busy time in premium funding too. This year we’re already noticing issues that a business can face when it finds itself unprepared come the end of June.

Mat Donaldson has managed our market-leading Risk Assessment team for eight years, delivering a 99.97% approval rate for our brokers in 2023. Mat has a unique and compelling view on the benefits of understanding the potential problems. In this article, we look at how to deliver more value to your clients by supporting them this end of financial year.

On the pulse: more credit risk ahead

Admin — Thu, 14 Mar 2024 13:00:00 GMT

Following a tumultuous 2023, credit risk is still rising. What does this mean for Hunter Premium Funding brokers and our customers?

With dishonour rates and insolvencies at a record high, we look at what’s to come for brokers and their clients, and how we can better prepare.

Understanding the retail downturn

Admin — Thu, 30 Nov 2023 13:00:00 GMT

In today's rollercoaster economy, businesses face more challenges than ever before. For those in retail, the situation is even tougher.

Cash flow management is all‑important in 2023

Admin — Thu, 06 Apr 2023 14:00:00 GMT

“The benefits offered by an effective cashflow management strategy become immediately apparent during times of economic uncertainty,” says HPF CFO Beau Goodyear.

Economic update: A soft landing for New Zealand?

Admin — Thu, 06 Apr 2023 14:00:00 GMT

The New Zealand economy shows resilience but inflationary pressures are weighing heavily on business.

A constant when times are tough

Admin — Mon, 07 Nov 2022 13:00:00 GMT

No premium funder can help its insurance broker partners navigate challenging economic conditions like Hunter Premium Funding.

HPF looks after customers when in need

Admin — Thu, 27 Oct 2022 13:00:00 GMT

Hunter Premium Funding is there for our customers when they need it most. During periods of financial hardship, customers can talk to us about ways we may be able to assist them to get back on their feet.

Complaints handling the HPF way

Admin — Thu, 27 Oct 2022 13:00:00 GMT

Creating a bond of trust between lender and customer is just one way Hunter Premium Funding looks to establish strong relationships with its customers.

Planning for change. Premium funding in a time of interest rate rises

Admin — Thu, 14 Jul 2022 14:00:00 GMT

An increase in inflation is driving interest rate rises for the first time since 2010. What does that mean for Hunter Premium Funding and our customers?

After more than a decade of contraction, the interest rate cycle has turned. We look at what the rate rises mean for both customers and brokers, and how they can best navigate this new economic cycle.

It’s not unusual to hear the term ‘unprecedented’ when we talk about the effect of macroeconomic forces on fiscal policy. The COVID-19 pandemic certainly had a major impact on the global economy and Australia’s financial system. But we’ve seen major economic disruptions before – remember the GFC?

With the underlying interest rate going up, and further rate rises to come, what we’re seeing now is a correction after years of very low interest rates.

Beau Goodyear, Chief Financial Officer at Hunter Premium Funding, believes it should come as no surprise that the underlying interest rate has increased, and will increase further, on the back of inflationary pressure now that the Australian economy has opened back up.

“COVID still exists, supply chain issues still exist, and we have an unstable geopolitical environment that is making those supply chain issues worse,” Goodyear says. “However, demand is increasing again because people are back out and about. So, inflation is soaring as a result.”

The economy is just trying to normalise, Goodyear explains. “It’s a readjustment that just has to happen. In the same way people got used to working from home and not using public transport, so too people got used to having low interest rates on their home loans. We’re definitely at the other end now.”

Planning for the future

Goodyear says Hunter Premium Funding is looking to the future to determine what form premium funding can take for both customer and broker.

“With premium funding, the customer can free up cash flow by spreading their insurance costs over the term of the policy,” he says. “What we noticed during COVID was that, for small to medium enterprises (SMEs), premium funding started to become a mainstream line of credit. It points to the maturity of the product – businesses want to diversify their credit arrangements, so they’re not completely exposed to one level of lending.”

He says brokers can benefit from certain advantages when they partner with Hunter Premium Funding.

The organisation offers sustainability and consistency, thanks to its 45 years of premium funding experience.

Additionally, there is Hunter Premium Funding’s ownership of the debt collection process.

“We take the full administrative burden of debt collection out of the hands of our broker partners so they can focus on delivering their key set of skills for their clients,” Goodyear says.

Readying your business for this cycle

With more interest rate increases on the horizon, premium funding provides customers with confidence through a fixed rate lending program. It can help alleviate cash flow pressures for businesses today, while preparing customers for what tomorrow may bring.