Many business owners fail to realise that their pension is a valuable asset that can be used to help finance your business is a little know option.
It enables you to raise finance for your business for business purposes; and it can appear complex so we work in partnership with experts in their field who can offer the best advice structured to your requirements so you can take full advantage to pension led funding.
How Does It Work?
Advise on and set up, of the correct pension vehicle used is given to make the investment in the business.
How can the funds be used?
For any legitimate business reason.
How long does the process take?
From 3-14 weeks, depending on individual circumstances.
What checks need to be done?
Just like any lending, a fact- find process and some due diligence is carried out.
For certain transactions (including the purchase of property, company assets or intellectual property) a valuation may be required, which we can arrange.
What about Regulation?
Yes, all compliance requirements for Pension Led Funding are managed and covered.
Yes, there are fees, but you will not pay a penny (except for valuation costs if required) until the funds are in your bank account.
Why choose Pension Led Funding?
- Interest is paid back to the pension
- Growth and income into the pension remain tax free
- No need for personal guarantees or charges over domestic property
- No need for Monthly/Quarterly Management accounts
Pension led funding enables business owners to use their pension savings to lend funds to their company at commercial rates.
Security is taken against business assets, which can include a range of intellectual property, provided it has been professionally valued. Transactions are arranged either as loans or as a sale of company assets to the pension fund that are then leased back to the company for a set period.
Pension led business finance is a way you can use your existing pension pot (either a SIPP or a scheme from a previous employer) to make loans to your business.
If used correctly it means you can obtain an inexpensive, flexible loan for your business and your pension earns a competitive return ready for your retirement.
If you have a pension and would like to understand the options available to you, please contact us or send through an enquiry and we will contact you back.