IQumulate Premium Funding has announced a new “lower-cost” product that gives brokers another option to help struggling SME clients through the coronavirus crisis.

As insuranceNEWS.com.au has previously reported, assistance measures from leading insurers which involve deferment of premium payments for six months have not been well-received by many brokers, who have expressed concern about the impact on their own cashflows.

While one aim of the insurers’ deferment program is to help keep SMEs using the intermediary channel, take-up of the offer has reportedly been slow, with small companies wary about having a large payment waiting further down the track.

IQumulate’s new product retains 10 monthly premium payments, but with reduced costs through changes to settlement arrangements.

Details on the exact saving the new product offers to SMEs have not yet been made available, with the funder saying “there are many variables and each case is different”. However, it has confirmed it will not be applying an application fee.

CEO Raj Nanra told insuranceNEWS.com.au today the new product “will help brokers in their role and provide clients with some options to work through this challenging period”.

“It is based around cashflow management. We are providing an option for clients to continue with the monthly instalments.”

IQumulate says it developed the product after speaking to broker partners about alternatives that would suit changing market conditions.

“Just to stick to the same old process and same old product may not serve brokers and clients in this current state,” Mr Nanra said.

“It has been positive that we have been able to go out and engage with brokers as to what they need from us, and what their clients need from us, and to respond in quite a quick manner.”

The IQumulate product was flagged by parent company Steadfast in a presentation released to the Australian Securities Exchange last week.