Financial solutions for Actuaries

In the past, the actuarial profession was a small community of experts who worked mainly within the insurance industry. Today, the role of actuaries has expanded into  data science, investments, banking, finance, pensions and planning..

The growth in demand means exciting opportunities for actuaries. Businesses are starting to recognise the need for their skills in many fields fields that involve complex problem solving and quantitative modelling as the world moves  ever further into the digital age. New fields such as cyber risks - with data breaches resulting in a loss of highly sensitive and personal client information can means new types of insurance are. Businesses can suffer huge losses from a data breach. Hence there’s now an increasing demand for cyber insurance among businesses.

As well as insurers, actuaries provide advice to accountants, lawyers and wealth managers on  almost every kind of financial provision from pension planning to divorce, reversions, pensions aspects of insolvency and capital assessments.

Success as an actuary of course requires highly developed mathematical skills, the ability to understand complex situations and the potential and probability of harm. Success running your own actuarial consultancy requires something more; suitable funding for each and every business need. At Rangewell we can help independent actuaries find the financial solutions that they need.

Understanding your Funding Options
As an actuary running your own consultancy you may need to find the right funding to allow help:

• Set up your practice
• Buy into an existing actuarial practice
• Secure premises
• Acquiring equipment and assets
• Provide working capital
• Finance growth 
• Deal with tax
• Deal with problems

 

 
Setting up a new practice

If you are ready to set up as an independent actuary, you may find that your funding needs are relatively simple.  You may have contacts which are able to provide you with consultancy work - but building up a full list of profitable clients could take years.

You will need premises.  A serviced office will require an upfront payment, while renting a small conventional office suite  will demand providing acquiring everything from a desk and chair to a range of IT equipment. There will be overheads, and you will need to arrange funding to keep your business running while you work to establish it.

You will need to find a range of funding solutions - but you will probably find that banks will be unwilling to lend to a new business venture..

At Rangewell we understand the challenges of setting up a new practice, and the lenders who can support new business ventures. Find out more about new business funding for Actuaries.

 

Buying into an existing Actuarial practice

There is an alternative way to run your own actuarial consultancy - by buying into an existing practice as a partner, or buying it outright. The costs involved will depend on the turnover of the practice, but are likely to be substantial.

 Alternatively, if you already own an established practice, you might want to consider acquisitions, mergers or expansion; again costs will be high.

We can help you find financial solutions to let you buy into an established practice, which can reflect your professional status with a highly competitive loan. These include funding for partner buy-ins and Buy-outs, which will let you become a partner or acquire an entire business, and business acquisition funding..

We can also provide solutions to let you selectively acquire as the goodwill and client list - from existing practices which may be closing down for reasons such as retirement.

 

Funding premises for Actuaries
The actual cost of renting even a small office will depend on your location, and the square footage. It may be best to take on more space than might be strictly necessary to allow you to take on assistants or a partner in the future.  There will be service charges and business rates on top of the bare lease, plus you may need upfront funding in order to secure the agreement - we can help provide a number of solutions to assist you with this.

However, renting means ongoing costs, and puts your practice at risk of rent increases.  Buying your premises with a Commercial Mortgage may mean decreased monthly outgoings and provide with a valuable asset for the future. All commercial property finance is arranged on an individual basis - but as an professional, you will be able to secure preferential rates

We can provide solutions which will let you buy the premises you already operate from, or buy a new freehold property to use as your offices in the future.

Buying premises may be a sound move for your practice, but you may need to make an additional investment to bring premises up to the standard you require.

We can provide solutions which will let you fund refurbishments - from light decoration to major extensions and building work.

 

Funding equipment for actuarial businesses

Your IT setup, including computers and printer will be costly, and you may need specialised software with operating licenses and renewals, training and maintenance.  

The list of equipment you need will not stop there. You will also need to furnish your office, and you may need to provide vehicles.

Asset Funding can usually provide the most cost-effective solution for most equipment needs. There are several types of Asset Funding to consider. Hire Purchase may be ideal for items that you will wish to keep for the long term, such as desks, chairs and document storage. Leasing may be more appropriate for IT, as it will be easier to update to use the latest and most reliable technology whenever you need it. Contract Hire might help you reduce the costs of providing vehicles.

At Rangewell our experts can help you help you find the most appropriate Asset Funding solutions for your practice, with both HP and lease agreements, together with business Contract hire for your vehicles.

We also have specialised funding to help you provide and upgrade your IT equipment 

 

Cashflow and growth finance for Actuaries

Cashflow is a challenge for any business, and especially during the early stages. Cashflow support and working capital finance may be necessary to provide cash to deal with overheads. It is usually designed to be repaid in the short- to medium-term, once the practice is fully on its feet. Find out more about cashflow finance for Actuaries.

Once your practice is established, you may be ready to grow it. Large-scale finance can be vital for plans such as acquiring a competitor, opening another branch, or taking on staff.. Lenders may require an established trading history and record of profits, but it may be possible to arrange Growth Finance based on your profit projections, rather than on your trading history. Find out more about Growth finance for Actuaries.

Insurance for Professional indemnity
As an independent actuary responsible for £ millions worth of risk, your professional indemnity insurance will be a major expense. There are specialist insurers who can help,  and a number of ways to provide for the costs. Find out more about solutions for professional indemnity.

 

Tax loans for Actuaries.

Tax is  an inevitable and predictable business expense but a large quarterly VAT or annual tax demand can cause real problems with your cash flow, particularly when it falls at the same time as other costs. 

Tax Loans can help you spread the cost of any tax demands into affordable monthly payments.
 

• Better control of cash flow
• Fixed monthly payments
• Quick and simple to arrange
• Avoids issues with HMRC, potential penalties and professional liabilities

See how a Tax Loan can mean better control of cashflow for Actuaries with fixed monthly payments.

Invoice Finance for actuaries
Clients, and especially large corporate clients can often take months to pay your invoices. With an Invoice Finance arrangement, you can draw down cash can as soon as work is done, and you issue an invoice. It means that your practice can rely on a flow of cash that keeps pace with the amount of business you do.

Find out more about Invoice Finance for Actuaries.
 

Goodwill loans for Actuaries.

As a professional with his or her own practice, you represent an excellent prospect for lenders.  Lenders can recognise your status as a professional with preferential rates secured on the goodwill built up by your practice. 

It can bring you a sum typically between £50,000 and £500,000, with repayment over up to 15 years. Interest rates are agreed when the loan is taken out, and are variable - but will be more favourable than those provided by other types of lending methods. What’s more, the Goodwill Loan can be used in any way that you wish, for personal as well as business purposes. 

At Rangewell we can help you find the Goodwill Loan that is right for your practice.

Find out more about goodwill finance for Actuaries.

Dealing with credit issues

en the best run business can run into financial difficulties. Problems with getting paid can become a cashflow crisis, and discovering that you cannot meet your immediate commitments could lead to insolvency.

At Rangewell, we know the solutions which can help your practice deal with challenges. We can even provide funding solutions if you have a damaged credit history or CCjs.

Find out more about finance for Actuaries facing financial difficulties.

How we help you capitalise your practice

At Rangewell, we know the lenders who can offer the most competitive rates for all types of finance, including Professional Loans, Unsecured and Secured Loans,As well as conventional loan products, we can help you find Alternative Funding, using new loan providers and innovative funding solutions.

Whether you have a straightforward finance need, or you require something more complicated like ‘Jigsaw’ funding made up of a combination of products, we can work with you to find the answers that are right for you, your practice and your plans for the future.

Call us now to get our experts working for you.