Seller financing shows up in many insurance agency acquisitions. Used well, it bridges valuation gaps, preserves buyer cash, and gets deals done that would…
Insurance Agency Loans
What Are Insurance Agency Loans?
Insurance agency loans are business loans built for agency owners. They're secured by the agency's book of business and repaid from its recurring commissions, so the agency's own revenue supports the loan.
AgileCap lends only to insurance agencies, from $100K to $10M. Agency owners use our loans to buy another agency or book of business, fund an internal succession, hire producers, refinance existing debt, or cover a short-term gap. The right loan depends on what you're trying to do, so start with the loan types below.
Types of Insurance Agency Loans
Six loan programs, each built for a different stage of agency ownership.
Acquisition Financing
Best for buying another agency, a book of business, or a partner's stake. Loans are sized to the commissions and retention of the agency you're buying.
Succession & Internal Buyout Financing
Best for transferring ownership to a producer, partner, or family member. Ownership can change hands in phases or all at once.
Growth & Working Capital Loans
Best for hiring producers, upgrading technology, or funding marketing. Terms are generally under 5 years and tied to the return on the investment.
Refinance & Restructure
Best for consolidating high-cost debt, like merchant cash advances, credit cards, or seller notes, into one loan with terms up to 10 years.
Bridge Loans
Best for covering a short timing gap, like pending tax returns or an acquisition that closes before permanent financing is ready. Terms are generally under 12 months.
SBA Alternative Loans
Best for agency owners who were declined for an SBA loan or can't wait through the SBA process. Often secured by the business instead of personal assets.
Typical Insurance Agency Loan Terms
Every loan is built around the agency's cash flow, but most fall within these ranges.
Who Qualifies for an Insurance Agency Loan?
AgileCap looks at the agency first: its commissions, retention, and cash flow. On the borrower side, here's what we typically need:
- A credit score of 550 or higher. Banks often look for 720+ and SBA lenders for 680+.
- Two years in business, or two years of insurance industry experience if you're buying your first agency.
- An LLC or corporation by the time the loan funds. Sole proprietors and general partnerships don't currently qualify.
- Five pieces of information for a preliminary term sheet: your business name, the loan amount, existing business debt, annual commissions, and the owner's credit score.
If you don't qualify today, you can reapply later. We work with borrowers individually when there's a clear reason behind a qualification issue.
FAQ
Insurance Agency Loan Questions
Talk to a Lending Advisor
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