Premium Funding has introduced what it calls the industry’s first pre-approved business loan product to be sold via brokers.

Director Ross Hayward told insuranceNEWS.com.au Premium Funding Advance provides loans of up to $20,000, and there are plans to raise the limit.

An eight-month trial of the product was a success, with brokers’ clients taking out $2 million in loans, he says.

“We found during the trial that many clients were in the process of applying to the bank for funding, but Premium Funding Advance was so convenient they chose to go with us instead.

“It’s hard for small businesses to access capital, so this is a simple solution.

“Other funders will find it very hard to offer this product. They have very strict banking covenants that often require trade credit insurance attached to their loans.”

A line-up of other new products will be introduced in the next six months, according to Premium Funding.

“The next product will be a technology piece that will save an enormous amount of time and cost and increase revenue for brokers,” Mr Hayward said.

“We just have to keep innovating and keep doing things differently to other funders.”

Brisbane-based Premium Funding wrote about 40,000 contracts last year and is among the three biggest premium funding companies in the country.

It deals with more than 1000 brokers, providing more than 100,000 quotes for about 300,000 insurance policies annually.