Sourcing your funding directly through your own accrued pensions is a flexible and efficient alternative funding option for your business, giving you more control and freedom whilst interest charged is added to you pension.
Pension Finance
Pension funding is still a relatively unknown product and offers the ability to raise funds based upon the pensions accrued by one or more owners or directors of the business they control. Any money lend to the business is paid back with interest and will increase the size of the pension.
It is a complex product, but in essence any amount borrowed works like a business loan, i.e. the amount is borrowed from the personal pension pot(s) and paid back with interest by the business. This means that a growing business can also increase the pension pot(s) of its director(s). There are alternative ways for the pension to invest directly in the business, to find out more please ask for a call back from our advisors.
Funding
£50k to £1m
Repayment Terms
1 month to 5 years
Typical rates?
Varies depending on risk profile, amount, term
All interest rates quoted are indicative only as rates will only be confirmed based on the risk profile for each deal. Risk category associated with the deal. This is based on primarily debt survivability and security available for the loan
Advantages of Pension Finance
Borrowing from personal pensions means the interest you pay back on your borrowing is paid back into your pension
Growth and income in the pension remain tax free
No need for Personal guarantees and charges over property
Funds can be used for any business purpose
Things to be aware of…
Pensions are a long-term savings vehicle to provide retirement provision for its members
The amount you can borrow is limited by the size of the pension pot(s)
The set up time can be several weeks
