Standard Premium Finance Holdings's Business Segments

Standard Premium Finance Holdings, Inc., incorporated in Florida in 1991, is a finance company specializing in collateralized loans for financing insurance premiums on commercial property and casualty insurance policies. The company operates through its wholly-owned subsidiaries, Standard Premium Finance Management Corporation and Standard Premium Finance Leasing, Inc., and is licensed in thirty-seven states. It finances approximately $120 million in insurance premiums annually and collaborates with over 850 independent insurance agents and brokers who refer clients for premium financing. Borrowers typically provide a down payment of 20% to 25% of the annual premium, with the company financing the remaining balance, repaid in fixed monthly installments over nine to eleven months. Loans are secured by the unearned premium on the insurance policy, which the company may claim in the event of borrower default, enabling policy cancellation and loan recovery. Standard Premium maintains all required state licenses, complies with statutory net worth requirements, holds professional liability insurance, and employs technology to manage operations. The company compensates brokers through commissions and a rewards program without exclusive or long-term agreements. Its underwriting and risk management processes aim to maintain high-quality, low-risk loans.

The Company categorizes its Premium Finance Contracts Receivable into three segments for reporting and allowance calculations: Due from Insured, Due from Insurance Carrier, and Due from Agents. Amounts due from agents consist of balances related to agents' unearned commissions from policy cancellations and down payments collected on behalf of the insured, which are owed to the Company. Receivables are reported net of unearned interest, and the Company maintains a credit loss allowance for each segment.