For Insurance Marketing Organizations and Third-Party Administrators
Acquisition & Retention Benefit at No Risk or Cost
With no cost or risk, IMOs and TPAs can use Producer Advance to help recruit and retain key producers. By offering the rapid commission advance benefit, producers can get the cash advances to help manage their cash flow while investing in their businesses.
Producer Advance is a timely solution to the “expense vs. income” challenge faced by all producers when growing their businesses. Producer Advance makes cash available when expenses are highest, such as during open enrollment periods.
Through IMOs and TPAs, Producer Advance has provided multi-millions of dollars in cash advances successfully to producers nationwide. The program is designed to have minimal impact on the IMO’s and TPA’s operation.
How does it work?
Individual producers contract directly with Producer Advance. The amount of the commission to be advanced can be tailored to the cash flow needs of the producer. The IMO or TPA provides typical sales documentation and monitors the repayment of commission advances.
To get started, Producer Advance only needs a schedule of sales to be provided and a simple assignment agreement from the producers. Then Producer Advance handles the rest. The very first advance can be funded within a few days.
Cost of the Advance
The cost of the advance is 2%, multiplied by the number of months being advanced. For example, the fee on a 4-month advance would be 8% of the total amount to be advanced (4 months X 2%). The producer in this case gets 92% of the total advance in cash immediately and repays the full-face value out of commissions earned on renewals.