Agencies can enjoy attractive rates on revolving lines of credit through FIRST for expansion, acquisitions, or equipment and property purchases.
The following is an example of how an agent used a FIRST line of credit to refinance existing loans and build and execute an acquisition strategy.
This particular agent was in a slump after decades of rapid growth. It needed to revive its growth strategies, not only naturally with its existing programs, but also through the acquisition of agents and brokers with programs that would compliment theirs.
The agency also had two smaller loans at less favorable terms that it wanted to refinance. As is often the case, local financial institutions were hesitant to offer revolving lines of credit for agency acquisitions since they had limited experience with the valuation and sale of insurance agencies.
The solution came in two parts. First, we provided the agency with a revolving line of credit to finance their growth-by-acquisition strategy. With a short-term loan, the agency used the credit line to offer cash to agents it wished to purchase.
The second part involved a simple five year loan that the agency used to consolidate the two smaller loans and save money by paying a lower APR.
The agency ultimately used the line of credit to fund two agency acquisitions within a two year period. Their growth and loyalty to FIRST is evident by their continued and valued increase in their book of business.
FIRST can help you secure a revolving line of credit to suit the needs of your agency. Whether you are looking for a few thousand or millions of dollars, FIRST can provide great rates, flexible terms and impeccable service.