As an insurance agency owner, your days are filled with important income-generating activities. That’s why we provide a streamlined, efficient, and transparent process to requesting and receiving funds to help grow your agency.
Within 30-60 days, you could be fully funded and ready to invest back into your insurance agency. The timing of funding is determined by a variety of factors that go into our loan process. Depending on your needs, our Quick Application or Allstate Quick Application might be a convenient option for you. We’re happy to chat with you about your options.
The team at First Mid Bank & Trust Agency Finance works diligently to be attentive to you and your financing process. One way to keep things on track is for you and your staff to provide the requested information in a timely manner and to reach out right away if you have questions. The basic steps are shared below, along with an indicator of which party is responsible.
1. Discuss Your Needs – You and Us
If this is your first time working with First Mid Bank & Trust, our first call or meeting will be an introduction to you, your agency, and your goals. We gather a few basic metrics of your agency at this point and gain an understanding of your capital needs, objectives, expectations, and desired timeline.
2. Complete the Application and Provide Documentation – You
Our no-fee application is simple and straightforward. Our online application makes it easy for you to provide us with general information about your agency including:
- Name
- Tax ID
- Location
- Ownership
- Existing debt
- Authorization to run a credit report
- Summary of commission revenue
After your application is completed, we ask for preliminary documentation to help us provide you with capital as quickly and efficiently as possible. This will include the following items:
- Interim business financial statements for the current year
- Business tax returns from the past three years
- Personal tax returns from the past three years (for each individual owning more than 20% of the agency)
- Personal financial statement (for each person with more than 20% ownership)
- Any other items related to your specific situation
3. Outline the Preliminary Terms – Us
To make sure we’re all on the same page, we’ll share the preliminary terms including the length of loan, interest rate, fees, and the general structure of your financing. In most cases, there are no upfront fees associated with this step.
4. Complete Underwriting – Our Team
After the preliminary terms have been explained and agreed upon, we will proceed with underwriting the loan application. In some cases, we may request additional information. This usually includes contracts with insurance companies and commission reports or statements. In certain situations, we may need further explanations of your financial statements or an entry on your credit report.
5. Submit Application for Credit Approval – Us
We will discuss your application and our underwriting to make sure everyone is on the same page. At this point, we will seek credit approval for the loan.
6. Collect CIP Documents – You and Us
We’ll collect Customer Identification Program (CIP) documents to confirm your identity and verify insurance licenses. It’s important to note that our loan structure requires a depository account in which certain carrier commissions will be deposited to cover loan payments. We will we set up a new account at First Mid Bank & Trust to accept those commissions. Documents needed include:
- Insurance Licenses — Individual and Business
- Driver’s License(s)
- If it’s an LLC or S Corp, Articles of Organization and Operating Agreement or Partnership Agreement
- If it’s a C Corp, Articles of Incorporation and Bylaws
- Corporate Authorization Form
7. Prepare (and Execute) Loan Documents – You and Us
When we’ve received the necessary documents from your agency, we will provide you with forms that need your signature and schedule a virtual closing with you.
8. Establish Deposit Accounts – Our Team
We set up at least one deposit account to receive any required commission assignment or deposits. These deposits allow us to establish automatic payments on your new loan.
9. Fulfill Other Closing Conditions, If Needed – You
In certain transactions, such as an acquisition, we need to receive additional information prior to funding the loan. A copy of an executed purchase agreement or seller note is one example of the type of document we may need.
10. Fund the Loan – Us
Upon completion of all closing conditions, we disburse the loan proceeds to the appropriate parties.
Because we’ve specialized in working with insurance agencies for more than two decades, we understand the industry and can deliver efficiencies in the loan application and funding process.
We’re here to help make your life easier and support your agency growth. Meet our team of professionals or contact us today.
