Think Outside the Bank: 3 Creative Financing Solutions for Independent Agencies

Independent insurance agencies are in a unique position to fund growth using one of their most valuable assets — their book of business. But growth doesn’t always mean mergers or ownership transitions. Whether it’s expanding into new markets, hiring talent, or upgrading operations, there are flexible financing options available—if you work with a lender who truly understands the agency model.

Here are three real-world examples of creative financing solutions that helped agencies achieve very specific, nontraditional goals:

Buying a Targeted Book of Business

One agency wanted to acquire only part of another agency’s book — specifically, the policies written with certain carriers. Most lenders would require full financials from both parties and expect a complete business acquisition. But a specialized lender tailored the underwriting process to focus solely on the targeted book of business.

Because both agencies had existing relationships with the same carriers, the deal posed minimal disruption risk. However, it required both sides to have clean, accurate internal reporting and a fully utilized agency management system (AMS) for the lender to assess value and risk with confidence.

Splitting a Family-Owned Agency

In another case, a second-generation family agency needed to split into two separate businesses — one focusing on commercial and employee benefits, the other on personal lines. The challenge wasn’t just dividing assets; it was ensuring each new entity had the structure, systems, and working capital to operate independently.

To secure financing, both partners ran their respective books as standalone divisions well in advance, with clear leadership roles, robust accounting, and detailed reporting. This preparation gave the lender a strong foundation to assess the cash flow potential of each new agency and fund the split accordingly.

Financing Real Estate + Hiring Growth

A rapidly growing retail agency needed more physical space—and more staff. Instead of going the conventional mortgage route, the agency worked with a specialized lender to secure a blended financing package: a commercial mortgage combined with a term loan, using both the real estate and book of business as collateral.

This dual-purpose financing not only helped secure the new office but also provided capital to hire the talent needed to support further growth.

The Bottom Line

Independent agencies shouldn’t settle for one-size-fits-all financing. With the right banking partner — one who understands your business, values your book, and embraces custom solutions — you can fund your growth goals in ways that traditional lenders simply can’t. It all starts with strong financial reporting, a clear vision, and a willingness to think outside the box.

AAI is a network for independent insurance agents looking to gain invaluable guidance, training, and technology to grow their agency. We give agents the individualized support to help them grow their agency based on their business model. Your branding efforts will be enhanced by the knowledge we provide. Contact us today to discuss how.