Scratch Agency Financing (any banks that will help, please)?

[ffs328]

So I've been a captive agent for 13 years at a well known company and have been working tirelessly to start a more modernized scratch insurance agency.

I've contacted many of the more well known insurance agency lending banks (crestmark, live oak bank, etc) and was told no, they will only lend for agency/book purchases. Then I called Huntington Bank and actually went through the underwriting process with them. I was eventually told that they would give me about $70k ($20k for startup expenses, and only $50k for working capital), when I need 200k to get me though the first 3 years. My business plan is very thorough explaining every expense, and revenue projections. I've built a scratch agency before, but they all seem to look at this as a big risk; especially the SBA.

Does anyone know of a bank that is a little bit more liberal and will work with a scratch agency? I'll try anything at this point. Erie and Travelers have both agreed to appoint me verbally, but I'll look like a real *** if I can't get this final piece (financing) figured out.

 

[fed up]

I know that Farmers and Allstate will want to see liquid capital, not borrowed money for the start-up. They will accept that there is a loan to purchase a book but they do not want to see someone faced with premium payments attempting to keep the doors open. A loan for a BOB is income from the start. A scratch agency will have 50K--100K in first year costs if there is an office with staff

 

[producer1]

ffs328 - a company i represent does provide some unique lending programs.. pls email me at [email protected] with how we can connect privately for me to gather some information from you.

 

[ffs328]

I know that Farmers and Allstate will want to see liquid capital, not borrowed money for the start-up. They will accept that there is a loan to purchase a book but they do not want to see someone faced with premium payments attempting to keep the doors open. A loan for a BOB is income from the start. A scratch agency will have 50K--100K in first year costs if there is an office with staff

Right I understand that, as that's the field I'm in now (captive for a large carrier with $1.7mil book- carrier owns the book unlike allstate). I need a 205k loan to start a scratch independent agency to get me through the first 3 years, as new business commissions may only be $30-$40k each of those years.

 

[fed up]

I think I remember receiving an email from Farmers where they now have a scratch agent, no money, no office program. I don't know if Farmers has figured out their market yet in all states because they often seem to be in an upheaval on the East Coast

 

[CarolynKing]

It will be hard to get financing from the bank with a bad background, also the parents will be very high. If you need financing for buying the equipment and the products fr the beginning I can recommend you to use the services of factoring companies in California. They helped me to make my business bigger. When I opened it, I couldn't imagine that it will grow so fast, and I couldn't handle all the payments to satisfy all the customers, so they helped me to pay for everything I needed, and after I got the money I gave them back, and the percents weren't so high.

 

[marindependent]

I assume that since this is so long ago [in startup time] that this financing was never completed.