Help!!! Need Financing for Purchase of Existing All State Agency

[FLInsa]

Re: Help!!! Need Financing for Purchase of Existing All State Ag

Any way to get the owner to finance the whole thing? Maybe give him a higher price to sweeten the pot.

Very unlikely. Most agents will want anywhere from 30-40% down.

As someone mentioned I would try Insurbanc.

 

[insurance123]

Re: Help!!! Need Financing for Purchase of Existing All State Ag

Any way to get the owner to finance the whole thing? Maybe give him a higher price to sweeten the pot.

I am the owner.

 

[Bertolinoins]

Re: Help!!! Need Financing for Purchase of Existing All State Ag

I applied with Oakstreet about a month ago. Works a little different however b/c I own a brokerage. I have about $3 million on the books but they wouldn't count business from wholesalers. A large part of my business is fire departments and they also would not count the future commissions on this as they don't like specialty carriers. You'll also need to be careful if you already have a loan out there as they may require you to roll that over. Check your UCC1 filing. Any other brokers out there with experience on this?

OSF wants to see most of your volume coming from direct appointments because few niche programs through wholesalers hold together for a full 5-8 years. They love PL and small BOP revenue through standard carriers so they can predict the monthly revenue and get paid directly from the carrier.

 

[insurance123]

Re: Help!!! Need Financing for Purchase of Existing All State Ag

OSF wants to see most of your volume coming from direct appointments because few niche programs through wholesalers hold together for a full 5-8 years. They love PL and small BOP revenue through standard carriers so they can predict the monthly revenue and get paid directly from the carrier.

That's exactly right. My carrier has been in business for 41 years. OSF takes a cookie cutter (they call it streamline) approach though and does not care that they are A+ with 41 years in business. They won't take a look at you on an individual basis.

 

[Bertolinoins]

Re: Help!!! Need Financing for Purchase of Existing All State Ag

That's exactly right. My carrier has been in business for 41 years. OSF takes a cookie cutter (they call it streamline) approach though and does not care that they are A+ with 41 years in business. They won't take a look at you on an individual basis.

Exactly... there are so few options for funding based off of future commissions that you can take it or leave it. I think insurbanc is more flexible and creative but I don't know if they will look at small deals.