You can pay in full for the policy via a credit or debit / master card or you can send a payment via BACS . This is the easy way to pay for the cover however it can present a problem if you are not cash rich and have cash flow issues. Obviously as soon as you have paid then this means that your funds are not available which could be an issue if you are a new start business part time looking for a discount with no NCB behind you.
The other option is to pay part up front and part on monthly finance. The payments that are created on finance will incur interest charges, payable on a monthly basis. If you are a part time Trader then this method of payment operates as an efficient means of funding the policy, particularly as you will be aware of how much to put down as a deposit and how much finance you have available. Some combined Motor Trade policies will allow zero deposit as the Business is an established entity and will be known to the Finance Companies. Another method of payment is the full amount on Finance. This could be suitable for a part time Trader working from home. In this instance if you are working from home, then you will need to spread your overheads over the whole year.
Certain Insurers will provide Motor Trade Insurance working from home to individuals who have an established track record. They will allow the person working from home to pay on three monthly instalments, without any interest applied. This would be down to the Broker concerned and is at their discretion as to whether they would allow this to happen. Pay monthly policies are now only available via Finance companies and will be available to people working from home or from Business premises. There are advantages and disadvantages of using Finance companies, but the main disadvantage is that interest is paid on a monthly basis.
Therefore in summary if you are looking for motor trade insurance working from home then various options are available but the need for finance depends on how established the business is, and what credit score the business has.