Instalments in, insurers paid, refunds out, on one ledger
Premium finance turns one annual premium into twelve collections, pays the insurer their share, and refunds the customer when a policy cancels mid-term. Three flows against one policy, and keeping them reconciled is where it gets fiddly.
One policy, three money flows
The customer pays the premium in monthly instalments, so a single annual figure becomes a recurring collection that must hold for the life of the policy.
The insurer, meanwhile, often wants paying up front or on a schedule of its own, so the money you collect over months has to fund a payout that does not wait for it.
When a policy cancels mid-term, a pro-rata refund runs the other way, and it has to reconcile against the instalments already collected and the insurer settlement already made.
The payment mix that fits
Not one rail. The two to four that match how money actually moves here.
Collect monthly premium instalments on a mandate, timed and retried to the customer's pay date.
Pay insurers and issue mid-term refunds the same day, referenced to the policy.
Take the deposit or first payment over a bank link, with no card fee on a larger one-off.
Your flow of funds, orchestrated
The deposit is taken over Pay by Bank, and monthly instalments collect over Direct Debit timed to the customer's pay date. The insurer is paid over Faster Payments on its own schedule, referenced to the policy. If the policy cancels, a pro-rata refund goes out over Faster Payments and reconciles against the instalments collected and the insurer settlement made. Collection, payout and refund sit on one ledger per policy.
Every book moves money differently. We map your flow of funds and quote one integration across the rails that fit.
Related
Payments for insurers and premium finance: FAQs
Both run through one integration and post to one ledger against the policy, so what you collect from the customer and what you pay the insurer reconcile automatically.
A pro-rata refund goes out over Faster Payments and reconciles against the instalments already collected and the insurer settlement made, so the policy closes cleanly.
A deposit is a larger one-off where a percentage card fee bites, and a bank payment settles instantly with no chargeback.
Tell us how you get paid
Send us the mix of payments you take and make, and we will quote one integration across the rails that fit, priced on your volume.