Flock has partnered with Close Brothers to offer seamless premium financing, helping customers spread insurance costs. Brokers can use this or arrange their own financing. Finance options are shared upfront for full transparency.
What interest rate does Flock charge?
The interest rate is set at 5.5%.
What criteria does Flock use to assess whether a customer's credit history is acceptable?
A number of checks will be made to make a credit decision:
- Business Credit History
- UBOs Check (Ultimate Beneficial Owner)
- Cashflow Projections
Can we obtain finance for New Ventures with no credit history?
Yes, but this will be subject to the checks mentioned above.
How many monthly instalments will there be?
There will be 10 monthly instalments due after deposit payment. The required deposit is usually 20% of premium, and payable within 7 days of inception.
When would the first instalment be due, following deposit payment?
The first instalment is due within 5 working days of the contract being approved by Close Brothers, provided the deposit has been paid. For contracts over £50,000, approval typically takes at least 48 hours. Subsequent payments are collected in line with their inception date.
However, customers can request a preferred payment date, as long as it falls within 28 days of approval. So, in summary, the first instalment will be taken no sooner than 5 working days after approval and no later than 28 days, depending on the customer’s preference.
Is it possible for customers to pick a specific day of the month to make their instalments payments?
Yes. The customer will need to contact Flock, via their broker, and request a change of date.
Who are funds for the finance agreement paid to?
Customers will pay the deposit directly to Flock, then they will pay instalments straight to Close Brothers via direct debit, which will be set up during the loan application process.
What is the process should a customer default on an instalment?
For risks over £50K, Close are responsible for credit control decisions, and will notify Flock if the policy needs to be cancelled.
For risks under £50k, payment will be retried after 7 days.
Should payment fail to be received in either scenario, a 7 Day Notice of Cancellation (NOC) will be issued to the client.
Are there any fees for late payments?
Yes, there is a £50 failed payment fee.
Should the customer make payment within the 7 Day Notice of Cancellation (NOC) period, will we rescind and continue with cover?
If monies are received from the customer within the 7 day NOC period, Flock will rescind the NOC and cover will continue.
If a customer misses several instalments but catches up within the 7 day Notice of Cancellation (NOC) timeframe, are any penalties applied?
Close Brothers treat every default the same. Flock's Credit Control team will contact the client after each default to recover the outstanding balance. While resolving missed payments within the Notice of Cancellation (NOC) period helps avoid immediate cancellation, multiple defaults may impact renewal, and terms may not be offered again.
Are mid-term adjustments (MTAs) automatically added to the finance arrangement?
Yes, MTAs are automatically added to the finance agreement and the remaining monthly instalments are updated to reflect either the increase or decrease to the premium.
What happens to MTA’s made after month 11?
For MTAs in the final month of the policy, the customer will be invoiced or refunded by Flock for the full value of the MTAs.
Are MTA additions subject to interest charges?
Yes, interest is charged on MTAs.
Are there any other fees included?
There is a £25 or £50 setup fee applied (depending on premium size), as well as a £125 cancellation fee for any cancellation (Flock driven or customer request). Fees are added to the first instalment and will be noted as a separate line item to the loan amount.