Standard Premium Finance Holdings, Inc. (OTC: SPFX)

Standard Premium Finance Holdings, Inc. is a specialized finance company that provides collateralized loans to businesses and individuals for financing commercial property and casualty insurance premiums. The company was incorporated in Florida in 1991 under the name Standard Premium Finance Management Corporation and later reorganized under a holding company structure in 2016. Standard Premium Finance Holdings, Inc. operates through its wholly owned subsidiaries Standard Premium Finance Management Corporation and Standard Premium Finance Leasing, Inc. The firm is licensed to conduct premium finance activities in thirty seven states and has been active in the industry for over three decades. It originates loans primarily through a network of independent insurance agents and brokers who refer clients seeking to finance their insurance policies. As of the end of 2025 the company had approximately eighteen thousand eight hundred forty six active premium finance loans with a total financed premium volume of about one hundred twenty million dollars per year. The outstanding loan portfolio stood at roughly seventy six million six hundred thirty thousand dollars at the same date. Average loan sizes range from one thousand to one hundred thousand dollars and borrowers typically make a down payment of twenty to twenty five percent of the annual premium. The loan term is generally nine to ten months and the unearned premium on the financed policy serves as collateral protecting the lender in case of default.

Revenue is generated primarily from interest and fees charged on the premium finance loans originated by the company. When a loan is approved the borrower pays a down payment usually twenty to twenty five percent of the annual premium and the company funds the remainder. The borrower repays the principal plus interest in equal monthly installments over the loan term which is typically nine to ten months. The company recognizes finance charges as income using the Rule of 78s method and records initial service fees and first month’s interest at contract inception. Late charges are also recognized as income when assessed and are capped at the maximum permissible level set by state regulations. Interest rates on loans vary based on the size of the loan the rating of the insurance carrier and the creditworthiness of the borrower. The firm pays commissions to referring insurance agents and brokers where permitted by state law and may also offer a rewards program that provides points redeemable for travel and merchandise based on financed premium volume. Additional income may be derived from fees for processing loan applications and from any gains on the sale of loan portfolios although the core earnings stream remains interest and fee income.

The company operates in a highly competitive premium finance industry that includes three main competitor types. Large national finance firms affiliated with commercial banks originate over seventy percent of all premium finance loans and benefit from low cost of capital. Regional finance companies owned by entrepreneurs operate in limited territories and rely on private debt and asset based lending. Smaller local finance companies are often family owned and may be linked to insurance agencies. Standard Premium Finance Holdings, Inc. differentiates itself by emphasizing technology that enables quick loan application responses and by providing personalized service to its broker referral network. The firm’s access to revolving credit lines and subordinated notes supports its ability to originate loans while maintaining competitive pricing. The collateralized nature of its loans which reduces credit risk also contributes to its market standing. The company maintains a conservative underwriting approach and monitors credit quality through internal risk ratings that classify loans as pass or special mention based on collateral adequacy. Its long standing relationships with more than eight hundred fifty independent agents across thirty seven states provide a stable source of loan origination volume.

The company’s customers are primarily small to medium sized businesses that obtain property and casualty insurance through independent insurance agents and brokers. These businesses operate in a variety of sectors including transportation construction manufacturing services and retail. The financed policies commonly cover motor truck cargo physical damage and liability commercial auto commercial general liability commercial package policies professional liability and commercial property. A significant portion of the loan portfolio is concentrated in the states of Florida Georgia North Carolina South Carolina and Texas. The firm avoids financing policies that contain audit or reporting provisions because such features can reduce the amount of unearned premium available as collateral. Loan sizes typically range from one thousand to one hundred thousand dollars with a typical down payment of twenty to twenty five percent of the annual premium. The borrower base consists of entities that prefer to finance their insurance premiums to preserve working capital or because they lack the funds to pay the full premium up front. Standard Premium Finance Holdings, Inc. does not disclose the names of individual borrowers but serves a diversified base of commercial policyholders across its licensed states.