INSURANCE AGENCY

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FREQUENTLY ASKED QUESTIONS

Why do Insurance Professionals need Oak Street Funding?
Most insurance businesses have limited access to capital from banks. You can now borrow money directly from Oak Street by collateralizing your in-force commissions from qualified insurance carriers without giving up your most important asset — the customer. The funds can be utilized for any business purpose such as working capital, capital expenditures, purchasing leads, investing in technology or staff additions in order to increase your sales and income. We can respond quickly to our customers.
Why should I deal with Oak Street Funding?
Oak Street Funding has been able to provide millions of dollars to insurance agents across the country. Based on these results, we feel we have a great understanding of the insurance marketplace and can quickly evaluate and structure your loan.
What if I have bad credit?
Unlike your local bank, your personal credit score is not the only factor in our review process. We do check your credit but we are more interested in the stability and quality of the book of business we will be lending against.
Can Oak Street Funding fund an acquisition of an agency or book of business?
In most cases Oak Street is able to use the seller’s book of business as the collateral for the loan, thus limiting the amount of out of pocket money needed for the acquisition or block of business and minimizing the effect on the cash flow of your current business. However, you are responsible for completing your own due diligence.
Is Oak Street Funding a direct lender?
Yes, Oak Street does act as a direct lender. We will help you structure and evaluate your loan alternatives and provide you with options so you can select the best structure for you. We do not have to find another financing source for your loan; we have funds available and we make the decision.
How long will it take to put financing in place?
All decisions are made by the Oak Street team which allows us to expedite the process for our borrowers. The amount of time required to complete financing depends on the timelines of information provided by you and the respective insurance carrier(s). The typical financing, once all requested documents are in, can be completed in less than three weeks.
What kind of fees will I have to pay to complete a financing?
Once you have reviewed the financial terms with one of our loan officers and agree that we can assist, a deposit of $500 is required; this amount can increase depending on the size of your loan. At time of closing, you are given credit for this fee to be applied towards closing costs and our commitment fee. The commitment fee is determined by the effort required by OSF to underwrite your loan.
What if Oak Street Funding is not interested in making a loan to me?
We are transparent throughout the entire process. We will let you know as soon as possible if you are not approved for financing.
What if I do not like the financing alternatives presented to me?
You are not required to accept any financing offer. Before beginning the underwriting process, we determine the type, purpose and costs of financing for you, and we also discuss the loan structure. We are very straightforward about what is and is not possible. Therefore, you will know ahead of time what we think is possible.
What are the steps involved in obtaining financing from Oak Street Funding?
The first step is our high-level review of your insurance policies that will be used as collateral for your loan. Based on this review, Oak Street will propose preliminary loan terms. Once you have agreed to preliminary terms, you are assigned to a loan coordinator who will guide you in gathering all required documents for our underwriting team. Once all required documents are received, you will be assigned an underwriter who will work through the due diligence process. Once the loan documents are signed and approved, we will fund the loan proceeds.
What is your interest rate?
There are many factors that contribute to the interest rate, such as insurance carrier rating, product type, age of your book, annualized commissions relative to your requested loan amount, and credit score. To get more information, please select GET A QUOTE.
What length of terms do you offer?
Our terms vary by product, but typically they range from 1-12 years.
Will my policyholders receive any notice that I have borrowed against my future commissions?
No. There is never any contact with your customers. You continue to own and service your policies.
Can I “renew” or “re-borrow” before my loan is paid off?
Yes. Many of our customers have found this to be an excellent way to take full advantage of the value of a growing book of business. Several of our borrowers have requested a second or even third loan with Oak Street. When they understand how easy the process is they tend to come back to Oak Street.
What ongoing commitments will I have with Oak Street Funding once I have a loan funded?
Customers are required to submit their commission statements so Oak Street can reconcile the commissions paid on a monthly basis. There is a monthly service fee charged on the loan that allows us to track how the book of business is performing.
How will Oak Street Funding’s purchase of my commissions help my agency grow?
You can use the funds from Oak Street’s purchase of your renewal commissions to reinvest in your business, for example to purchase new leads or hire a new producer, generating even more new business.
How can I use my funds?
When obtaining a loan from Oak Street, your funds must be used for business purposes, such as working capital, advertising, technology upgrades or even purchasing a building.
What is the timeline?
Oak Street Funding will have a purchase completed typically within 30 days from the date all applicable documentation is received.

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