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 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 both get a cheap, flexible loan for your business and your pension earns a competitive return.