Premium finance approval is usually much simpler than a bank loan. The insurance policy itself secures the loan, so the questions are mostly about the policy, not your personal credit. Here's what's needed, what speeds things up, and what can slow them down.
Why Approval Is Simpler Than a Bank Loan
✓ The policy secures the loan
If the agreement is cancelled, the unearned premium returns to the finance company. That is why premium finance does not depend on your credit score the way a bank loan does.
✓ Your agent sends most of the information
Policy details come from your insurance agent, not from a long application you fill out yourself.
✓ The down payment depends on the policy
A larger down payment means a smaller amount financed and lower payments. Oscar's team will tell you the exact figure for your policy.
✓ A properly formed business makes it easier
Using your exact legal business name — the same one on your policy and your LLC, corporation or DBA paperwork — avoids back-and-forth.
Things That Can Slow Down Financing
⚠ The premium changes after you sign
If the policy premium changes after the agreement is signed, the paperwork may need to be updated before the account can be set up.
⚠ Non-refundable fees on the policy
Some fees can't be returned if the policy is cancelled, which can affect how the policy is financed. Your agent will know which fees apply.
⚠ Newer operators
If your business is new, you may be asked for formation documents or a little more information about your operation.
Things That Can Slow Down or Prevent Financing
✗ An earlier finance account with an unpaid balance
An unpaid balance on a prior premium finance account can slow down or prevent a new one. Mention it upfront.
✗ A bankruptcy or other open financial issue
These can affect whether a policy can be financed. Every situation is different — Oscar's team will tell you where you stand.
✗ Your insurance company won't allow financing
Rare, but some niche carriers or policies can't be financed. Your agent will know.
Approval Checklist: What's Needed
From Your Insurance Agent
☐ Policy details
→ Insurance company, policy or quote number, effective date, policy term, and total premium including taxes and fees
☐ The premium finance agreement
→ Prepared by your agent and signed by you (e-signatures are fine)
From You (the Insured)
☐ Your exact legal business name
→ The name on your policy and business registration
☐ Mailing address
→ Where you want your welcome letter and notices sent
☐ Phone and email
→ A mobile number and an email address you actually check
☐ Your down payment
→ The amount depends on your policy
For Newer Operators
☐ Proof of business structure
→ LLC certificate, EIN letter, articles of incorporation or DBA registration, if requested
☐ Recent business bank statements
→ Only if requested, to show your business is active
Common Issues to Avoid
1. Name mismatches
A business name that doesn't match the policy is one of the most common reasons for back-and-forth. Use your exact legal name everywhere.
2. Contact details you don't check
If signature requests or questions go to an inbox or phone you don't use, everything waits.
3. Signing in pieces
Signing some documents now and others later slows things down. Sign everything at once.
4. Changes after signing
If coverage or premium changes after the agreement is signed, let your agent know right away so the paperwork can be updated.
How to Speed Up Your Approval
→ Give your exact legal business name
Matching the name on your policy avoids corrections later.
→ Use an email and mobile number you check
Signature requests and questions arrive there — answer them promptly.
→ Sign everything at once
E-signatures are fine. Signing all documents together keeps things moving.
→ Be upfront about any concerns
If you have an earlier finance account with an unpaid balance, mention it. Transparency prevents surprises.
→ Consider a larger down payment
Putting more down lowers your amount financed and your payments.
After Approval: What Happens Next
✓ Welcome letter. You receive a welcome letter with your account number, your payment schedule and how to pay.
✓ Your coverage stays in place. The financed premium is paid to your insurance company on your behalf.
✓ You make your payments. Follow the schedule in your welcome letter. You can pay online any time through ePayPolicy at natprem.epaypolicy.com.
Common Approval Questions
Q: Do I need good credit?
A: Premium finance is different from a bank loan. The financed policy itself is the collateral — if the agreement is cancelled, the unearned premium returns to NatPrem. So the questions are mostly about the policy, not your personal credit.
Q: What if my financing can't be set up?
A: Ask why. Common reasons include an earlier finance account with an unpaid balance or a carrier that won't allow financing. Oscar's team will explain your options.
Q: How much is the down payment?
A: It depends on the policy. A larger down payment means a smaller amount financed and lower payments. Oscar's team will give you the exact figure.
Q: What if I have a past bankruptcy?
A: Every situation is different. Call Oscar's team and they'll tell you where you stand.
Next Step: Finance Your Policy with NatPrem
Ready to finance your premium? Ask your insurance agent to finance your policy with NatPrem.
What your agent will need:
- ☐ Policy details (insurance company, policy or quote number, effective date, term, total premium)
- ☐ Your exact legal business name
- ☐ Mailing address, phone and email
- ☐ Your down payment
Questions? Call (214) 586-3155 — Oscar's team will give you exact answers for your policy.