Mortgage to buy insurance broking book of clients?

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dmiles
Posts: 7
Joined: Mon Jun 13, 2016 7:16 am

Mortgage to buy insurance broking book of clients?

Postby dmiles » Mon Jun 13, 2016 9:16 am

I want to buy an insurance broking book of clients but since I don't have the capital to buy it myself, I'd like to take out a mortgage. A book of clients seems to be quite rare because I haven't found any ads with mortgages targeting them specifically. All I find is 'business loan' and nothing more. Can I get a mortgage to buy an insurance broking client book?

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Otto Dargan
Mortgage Specialist
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Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
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Re: Mortgage to buy insurance broking book of clients?

Postby Otto Dargan » Mon Jun 13, 2016 12:41 pm

Hi dmiles, welcome to the forums.

Yes, you can get an insurance broking business loan to buy an insurance broking book of clients.

Please note the following:
  • You can borrow up to 60% of the portfolio value of the client book, which is based on the bank's own revenue multiplier.
  • The maximum term is 10 years principal and interest (P&I).
  • The maximum interest only term is 3 years.
  • The mortgage is lent against commission income and premium funding.
  • If you can provide a residential property as security then cash flow finance is available.
  • You'll need to be in a strong financial position and have at least 3 years management experience.
  • Business loan refinance is available for existing facilities.
Please note that you may need to prove your Australian Financial Services Licence (AFSL) and provide a business proposal as well.

We have mortgage brokers who specialise in financing the purchase of client portfolios whether it's in the industries of insurance, financial planning or even accounting.

You can check out our website to learn more or speak with one of our business loan specialists by calling 1300 889 743 or by placing an online enquiry.

Cheers,
Otto
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

dmiles
Posts: 7
Joined: Mon Jun 13, 2016 7:16 am

Re: Mortgage to buy insurance broking book of clients?

Postby dmiles » Mon Jun 13, 2016 7:35 pm

I'd actually missed asking about how much I can borrow but you mentioned that and much more! Thanks a lot, Otto. Yes, we're also thinking about investing in an accounting practice so it would be good if I could schedule in a meeting with one of your brokers. Will call tomorrow to fix dates. Good day.


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