Oak Street Funding Gives Agents More Options

Insurance agents and brokers nationwide can now access critical operating and growth capital, from two new services from Oak Street Funding—purchasing commissions and lending against commissions from insurance carriers with a Financial Stability Rating^® of A or higher from Demotech.

"Our success comes from developing innovative lending products that meet the needs of insurance professionals and never overleveraging clients,” said Rick Dennen, CEO of Oak Street Funding, which pioneered commission-based lending.

Carriers that have earned top ratings from Demotech “deserve our trust and so do the agents and brokers who represent them,” according to Dennen. “Responsible lending is not about size—it’s about financial stability.” Demotech, a Columbus, Ohio-based financial analysis and actuarial services firm, helps level the playing field by offering Financial Stability Ratings^® to insurers of all sizes.

As another means of helping agents generate cash to achieve business and personal financial goals, Oak Street is purchasing renewal commissions for long-term care, Medicare supplement, whole life, term life and specified disease policies. “After years of building and nurturing relationships with clients, agencies and brokerage firms can now leverage the value of their books of business,” said Dennen. He added that the funds can be used for personal and financial goals, anything from acquiring another agency and investing in technology to paying for college and taking a dream vacation. After receiving the funds, agencies maintain relationships with clients, who don’t need to know that renewal commissions have been sold.

Oak Street uses proprietary software to evaluate past persistency and performance of the agency’s accounts—to maximize the value of its book of business. The value is also determined by reviewing the carriers’ A.M. Best ratings. Agencies can sell all or some of their books of business. Oak Street will work with an agency to determine what option—purchase or loan--best meets its needs.

For more information, visit www.oakstreetfunding.com.