Valeshire Financial hands each agency’s request to funding partners; the partner reviews the agency and decides any terms.
A CRM switch, with its data conversion and first-year licenses, fits a working capital loan. Computers, phones and a copier for a second office fit a term loan or equipment financing. A scanning project fits a credit line draw. Buying the office building is real estate, outside this site.
At a glance
- Insurance agencies and brokerages, Lenawee County, MI
45 employer establishments (CBP 2023)
- Paid employees, insurance agencies and brokerages
223 in Lenawee County, MI (CBP 2023)
- Insurance agencies and brokerages with a ZIP 49221 address
26 employer establishments (ZBP 2023)
- Insurance agencies and brokerages without paid employees
80 in Lenawee County, MI (NES 2024)
Insurance agency loans for a CRM switch at an Adrian, MI agency: conversion, training and the first year
An agency moving its policies, client notes and renewal dates into a new agency management system, its CRM, pays for more than the software. The old records have to be converted, and the staff has to learn the new screens.
In this invented example the vendor charges $4,800 to convert the data and $1,950 for a training package, and six CRM licenses at $118 per user a month are paid a year in advance, so the switch costs $15,246. A 12-month working capital loan at 13.8% turns the invented sum into payments of $1,367.46, $16,409.52 in all, with $1,163.52 of interest.
Paid monthly instead, the six invented licenses would cost $708 a month on their own, so the loan payment carries the conversion and the training on top of what the license would have cost. A partner decides whether the prepayment fits a loan at all.
Equipping an insurance agency’s second office in Lenawee County, MI
An agency that opens a second office elsewhere in Lenawee County leases the space, and the landlord’s work on it is not part of a funding request. What the agency buys to work there is.
| Item | Invented price |
|---|---|
| Two laptops for producers in the field | $2,940 |
| Three computers with monitors | $4,470 |
| Phone handsets and headsets | $1,380 |
| Multifunction copier | $3,650 |
| A conference-room display and webcam | $2,260 |
| Whole list | $14,700 |
On a 36-month term loan at 11.55%, the invented $14,700 list costs $485.10 a month and $17,463.60 over the term, of which $2,763.60 is interest. Equipment financing could carry the copier and the computers as well; a term loan keeps the laptops, display and phones on the same schedule. Desks, chairs and lobby seating are furniture and stay outside this site.
Scanning years of paper policy files: a credit line draw for an Adrian, MI insurance agency
Boxes of old paper files take up a back room, and moving them into the CRM means scanning them. An agency can buy a document scanner and send the rest of the boxes to a scanning service.
In this invented case the scanner costs $2,180 on day one, and a scanning service bills $5,760 for 64 boxes at $90 a box on day 21. Both are drawn on a line of credit at 13.3% and paid off together on day 75, so the invented scanner draw is out 75 days and the service draw 54 days, for $172.92 of simple interest.
Shredding the paper once it has been scanned and checked is a service cost, too, and can go on the same draw.
Insurance agencies and brokerages in Lenawee County, MI: staff, payroll and agencies with no employees
Per-user software pricing makes headcount the useful measure here. In 2023, insurance agencies and brokerages in Lenawee County, MI (NAICS 524210) had 223 paid employees spread over 45 employer establishments, and $22.4 million in annual payroll, by the County Business Patterns. Small agencies make up most of that count, since 71.1% of the 45 establishments, 32 in all, ran with a staff under five.
ZIP Code Business Patterns placed 26 insurance agencies and brokerages at ZIP 49221 addresses in 2023.
For agencies run without staff, the 2024 Nonemployer Statistics are the source: 80 insurance agencies and brokerages in Lenawee County, MI had no paid employees, with $4.9 million in receipts. The Adrian, MI page has a producer hire worked through for an agency, with invented figures.
Commission statements and the other records an Adrian, MI agency gathers before a partner’s review
An agency’s income arrives as commissions from the carriers it writes for, so commission statements show a funding partner what a bank statement alone does not: which carriers pay, how much and how regularly.
- Commission statements for the last several months, by carrier.
- The agency’s recent bank statements and its last filed business tax return.
- The vendor quote or invoice for the CRM, the computers or the scanning.
- A list of current business debts, including any office lease.
Which of these a partner wants, and whether it checks credit, is the partner’s choice during its own review of the agency. The office building or condominium suite itself is real estate, which is outside this site. The industries page lists the other trades.
By Valeshire Financial · Updated
