How Premium Finance Loans Are Structured...
The interest rates charged on the loan vary by the lender and the amount of the loan, but are often stated as a margin rate over the London Interbank Offered Rate (LIBOR). Typically, the larger the loan, the lower the margin. These rates will fluctuate over time and affect the premium financing concept's performance as compared to the original as-sold illustration. Managing a clients expectations is important, the loan terms and the amount of the loan that the client would be eligible for may determine what type of lending scenarios may be available for a client. Our lending parameters for our partners are as follows
LOAN FEATURES
LOAN OPTIONS
No origination fees
Fixed Rate
No prepayment penalties
30 Day LIBOR + spread 1 Year LIBOR + spread
INTEREST PAYMENT OPTIONS In advance In arrears Accrued (Caution needed) Hybrid/ Blend
Daniel P. Wachs | CFP, ChFC, CLU 1431 Opus Place #630 Downers Grove, IL 60515 Phone : 630.445.1399 | www.perpetualwm.com Email : dwachs@perpetualwm.com