What is Pension-Led Funding, and how does it work?
Pension-led funding is a form of working capital finance that enables businesses to lend funds from one or more company director’s personal pension/s, which are then paid back into the pension with interest. Pension-Led funding gives you a greater degree of independence because it’s your business borrowing from your own pension.
As the funds come from a company director’s pension fund, the pension holder and business can decide how the arrangement will work. Investing in a business does come with an element of risk, but if the business grows, the value of the assets will inevitably increase. Therefore on retirement, the pension holder could reap significant benefits from investing in their own business.
Pension Led Funding is secure and regulated with funds distributed from an HMRC registered pension fund. It also serves as a quick form of funding with an average timeframe of 6 to 10 weeks from quote to drawdown. Pension Led Funding is suitable for business owners who have pension pots worth a minimum of £50,000.
Are you looking to utilise Pension Led Funding for your business?
We work exclusively with Professional Pension Trustees who will assist you in the setup and operation of your own pension scheme, and provide you with access to the resources you need to operate your pension correctly.