Gracie Point Secures Funding and Refinancing for Multiple Premium Finance Loan Transactions in Different States with a Wide Range of Client Needs

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Gracie Point has recently funded and refinanced multiple unique cases with different loan sources with each case using a separate marketing concept to further enhance the client’s insurance portfolio. These cases were all in different states.

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Capital markets-driven funding technology helps quickly implement financing strategies.

Bob Powell, CLU, President and Chief Executive Officer of Gracie Point explains, “In a premium finance transaction there are many moving parts between the client, the funding source, and the carrier. Gracie Point's extensive capital markets capabilities, and life insurance expertise, allowed for a diverse array of marketing concepts to be quickly implemented and funded.”

Details on the cases are included below:

Inforce policy loan swap -
Client had taken out a $1M policy loan on an existing life insurance policy with a leading AA rated carrier to sure up his business finances during the economic downturn, and then later to expand the business operations and take advantage of favorable market conditions. The existing policy loan with the insurance carrier was at an interest rate significantly above the rate at which Gracie Point was able to finance the transaction saving the client four hundred and twenty five basis points on the cost of borrowing money, and further enhanced his balance sheet while taking on no additional business risk.

Refinance existing premium finance loan -
Insured had entered into a $3.5M premium finance loan arrangement at policy issue three years ago. During a competitive refinance analysis, the agent and clients chose to go with the Gracie Point refinancing product and significantly reduce their cost of capital from the existing lender who specializes in the life insurance marketplace. The client saved over one hundred and ninety basis points on the cost of borrowing money, while also reducing their collateral contribution requirement. The agent was able to help his client keep the policy in force, and allow for the business owner to retain capital and grow his business at a rate significantly above the premium finance interest rate.

Structured loan take out -
Agent’s clients were not satisfied with the existing structured loan provider because of service issues. In working with Gracie Point, loan models were created quickly which improved the clients financial position. Gracie Point's term sheet to closing took only a few weeks, while at the same time several improvements were made in the loan documents making it more favorable for the client.

About Gracie Point: Gracie Point is an independent specialty finance company focused on the fully- collateralized, traditional life insurance premium finance market with expertise in loan origination, structuring, and funding. Gracie Point utilizes a sophisticated, capital markets-driven funding technology as well as traditional bank lending platforms to generate broad and diverse capital sources so that it can offer sustainable premium finance loan products.

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Eric V. Miller
Gracie Point
(212) 487-5121
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