August 29, 2016


By owning your own premium finance company, you can increase your profits and expand your client services. As owner of a premium finance company, you will earn the interest, late fees, cancellation fees, etc. – adding substantial income from existing clients without the need for additional staffing, equipment, or overhead. Instead of giving away this revenue to outside sources, this increased revenue will help you grow your business.

The additional revenue that your premium finance company generates will become a key profit center for your organization. When you use outside financing, you are essentially “renting” their company. By forming your own facility, you are building a separate profit center that can be a valuable asset capable of contributing to other business needs and enhancing the overall value of your organization. Our clients enjoy the benefits of owning their own premium finance company and utilizing COST to perform the backroom work, meaning they are creating a new profit center for their organization without fixed capital expenses like office space, equipment, personnel, or financing software.

On average, our typical client earns a net profit (before taxes) of between $30,000-$40,000 per million financed on an annual basis. We will be happy to prepare a detailed projection outlining exactly how much profit your organization stands to earn from our program. As stated above, our clients retain all finance charge revenue, all late fees, and all cancellation charges. COST receives a small service fee for each account submitted, so there are almost no fixed expenses to meet. Don’t settle for the minimal commissions that traditional finance companies offer – there is a better way! Below are typical conservative profit results we’ve produced consistently for our clients for over 25 years in business:

Average Amount Financed MonthlyAverage Account Size Net Annual Profit

The above anticipates no capital investment in your company – investing your own funds will increase profits considerably and in some states capitalization is required. The profit to be generated from our program is dependent on several variables, including the amount financed, average account size, amount of invested capital vs. borrowed money, float, late charges, rates you charge, etc. We can tailor figures specifically for your company to demonstrate how profitable premium financing can be.