Using your pension funds to help finance your business
Many business owners fail to realise that their pension is a valuable asset that can be used for business purposes; although it is a complex product.
Pension-based lending 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 both get a cheap, flexible loan for your business and your pension earns a competitive return.