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How does Insurety Capital work?


A per-policy purchase price is negotiated at the beginning of the relationship. 


As the agency writes new policies, Insurety Capital funds the Purchase Price weekly as policies appear on the commission statements from the carriers.


During Annual Enrollment Period (AEP), Insurety Capital typically funds 70% of the Purchase Price (Medicare Advantage only), with the balance paid once the policy appears on the carrier commission statement. 


Agencies have the option to be paid commissions for some of their production at their current commission rate. 


Cancelled policies may be charged back on a sliding scale based on the time elapsed since the policy was purchased. 

Why should I sell my future commissions to Insurety Capital upfront vs getting an advance from a carrier? 

With a Carrier Advance: 

  • An advance is a loan from the carrier, appears on your balance sheet as debt, still requires ASC 606 accounting  

  • It makes tracking the commission and cash flow more difficult 

  • Often comes with interest on the advance (if it is available at all) 


With Insurety Capital:

  • Unlike an advance from a carrier, when you sell your commissions to Insurety Capital you run an all-cash business. 

  • You don’t need to track accounts receivable because you don’t have them.  You have cash instead. 

  • Your cash does not appear on your balance sheet as debt because there is no debt to Insurety Capital 

  • Instead, your cash appears as an asset on your business balance sheet and pure revenue on your income statement – no need for cumbersome ASC 606 accounting rules

  • Since it is not a loan from Insurety Capital, there is no interest on the cash you receive when you sell your commissions to Insurety Capital

  • An advance only provides limited cash to drive growth but with Insurety Capital the Purchase Price is driven by your performance


Finally, if you take an advance it comes with personal liability.  With Insurety Capital, you get cash. There is no liability, no debt, and no interest-simply cash in your bank

Why should I choose Insurety Capital vs getting a bank loan? 

With a Bank Loan: 

  • It is limited to your bottom line

  • There is liability associated with this option 

  • Banks will not take future commissions as assets 

  • Growth is limited as you are already capped  

  • Banks will require an “All Assets pledge against the loan – usually including personal assets 

  • Banks are reluctant to work with small businesses generally and sales organizations more specifically 


With Insurety Capital: 

  • Your cap is whatever you can generate! 

  • There is no loan payment 

Why should I choose Insurety Capital vs an Equity Partner?

With an Equity Partner:

  • With equity you lose any increase in value of your agency

  • An equity partner takes a portion of all company assets, including goodwill and the ability to continue to produce new policies

  • Equity partners are not easy to find

  • Equity injection takes a long time to negotiate, the entire business needs to be valued and the equity partner will conduct a cumbersome due diligence, which will drive up the transaction costs, including attorney and financial valuation expert fees

  • With an equity partner there are assets beyond commissions you lose, such as control of ownership, as well as additional challenges, such as partnership disputes

With Insurety Capital:

  • Insurety Capital is only interested in buying your commissions, and does not take a portion of company assets

  • Insurety Capital is ready to start today

  • Insurety Capital has no transaction fees to get started and you can sometimes start getting funding in less than 30 days


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