Insurance Agency Acquisition Financing Checklist

Planning to buy an independent insurance agency? Whether you're financing the full purchase or just filling a gap, being prepared makes the process smoother, faster, and more successful.

This checklist will help you organize your documents, assess your financial position, and get ready to secure the insurance agency acquisition loan that fits your deal — and your goals. (Want a deeper dive on this topic? Listen to our podcast on Acquisition Financing.)

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1. Examine Your Business Structure

Lenders want clarity. Make sure your agency’s structure and ownership details are clean, current, and ready for review.

Before you apply for acquisition financing, make sure your agency’s legal and ownership structure is clear, current, and ready for underwriting. Some lenders require specific business types or documents — and any inconsistencies could delay or derail your loan.

• Are you operating as an LLC or corporation?
  - Many lenders won’t fund sole proprietorships.

• Use your legal business name consistently on all loan paperwork.

• Confirm that your ownership percentages are clearly documented.

• Identify who is authorized to sign loan documents (signatories).

• Confirm that your agency’s EIN is active and matches your legal business name on all documents.

• Check whether your professional license needs renewal.

• Update your operating agreement, bylaws, or articles of incorporation if ownership or structure has changed.

Clean, consistent business structure gives lenders confidence — and clears the way for a faster, smoother approval process.

2. Get Your Finances in Order

A clear, accurate financial picture helps lenders make fast, confident decisions.

Lenders want to see a clear, consistent financial picture of your agency. Having the right documentation — and making sure it all tells the same story — can make or break your ability to secure insurance agency acquisition financing.

• Full business tax returns (last 3 years)

• Business bank statements (last 12 months)

• Carrier reports

• Profit & loss statements and balance sheets (last 3 years)

• Ensure all documents are complete, consistent, and up-to-date
  - Numbers should match across your tax returns, financials, and bank statements

• Identify and be prepared to explain any unusual trends in your financials
  - One-time expenses? A seasonal dip? Show that you understand the numbers

Well-prepared financials help lenders move faster — and at AgileCap, we’re ready to guide you through exactly what to submit and why it matters.

3. Present a Unified Front

Financing an acquisition isn’t just about paperwork — it’s about alignment. Lenders want to see that your leadership team is on the same page and prepared for the next step.

• Confirm that all owners, partners, and key producers support the acquisition plan

• Double-check your bylaws to confirm who is legally authorized to sign loan documents

• Review your agency’s succession plan or partnership agreement
  - Lenders may ask how leadership transitions are handled in the event of an ownership change

• Align on how and when you’ll inform your internal team
  - What’s your communication plan?
  - Who needs to know, and when?

When your leadership is aligned and your messaging is clear, the entire process — from funding to transition — becomes smoother and more strategic.

4. Protect Your Credit

Lenders will review your credit profile (and possibly your partners’) as part of the approval process. Taking simple, proactive steps now can improve your standing — and your loan terms.

• Pull your personal and business credit reports (and those of any partners)

• Address any errors or outdated information on your credit reports

• Avoid late payments — stay current on all bills

• Don’t open new credit accounts or make large purchases on credit

• Delay any pending credit transactions or new loans until your financing is secured

• Pay down as much existing debt as possible

• Ensure credit cards are not over-leveraged (aim for low utilization)

Strong credit signals reliability to lenders — and gives you better options when structuring your insurance agency business loan.

5. Know Your Book — and the One You’re Buying

Understanding both books is critical to structuring the right loan.

To secure the right loan, you need a clear understanding of both your current agency and the one you’re acquiring. This helps lenders evaluate the value of the deal — and helps you avoid surprises after the ink dries.

• Know the target agency’s annual premiums, commissions, and revenue

• Request a list of their carriers and each one’s percentage of the book

• Identify the types of policies written and their renewal cycles

• Review the geographic distribution and client makeup of the target book

• Understand their retention rates and carrier relationships

• Assess how well the new book fits into your current business

• Check whether your book and the acquired book can be used as collateral
  - Some insurance agency acquisition loans are secured by your commissions

• Review your master agreement and the seller’s — are there restrictions?

• Consider hiring an M&A consultant or industry expert to support your evaluation

Lenders want to see how the acquisition fits with your current operations, clients, and expertise. Stronger alignment means lower risk and better loan terms — and AgileCap knows exactly how to structure a deal that reflects that alignment.

6. Determine How Much You’ll Need to Finance

Run the numbers early — clarity speeds approval.

Once you’ve evaluated the opportunity, it’s time to run the numbers. Knowing what you can contribute — and what you’ll need to borrow — helps shape your loan request and speeds up approval.

• Estimate how much you prequalify to borrow

• Review your cash flow — will it support the expected loan payments?

• Identify how much capital or equity you can contribute

• Determine the gap between the purchase price and your contribution

• Explore whether the seller can finance part of the deal or offer a structured buyout

• Consider the 20/20/60 model:
  - 20% from you
  - 60% from a lending partner
  - 20% from the seller

The clearer you are on your funding strategy, the easier it is to align with the right lender — and close your acquisition with confidence.

7. Partner With a Lender Who Understands Insurance

You don’t need a generic lender. You need a funding partner who understands insurance.

Start with our Due Diligence Checklist to evaluate the agency you’re acquiring — from financials and operations to strategic fit.

Then connect with an AgileCap Lending Advisor.

With decades of working in insurance agency acquisition financing, we’ll help you navigate the funding process from start to finish. We customize every loan to fit your agency, your goals, and the deal you’re working on — no one-size-fits-all formulas here.