Pension based funding

Pension based funding offers business owners the option to invest a portion of their pension in their own business

The only form of funding where the interest paid on the finance provided is paid back to your pension

Pension based funding is a form of funding where the interest paid on the finance, is paid back to your pension. This specialist funding offers business owners flexibility and the option to invest a portion of their pension in their own business.

As a business owner you may have accumulated funds in a variety of pensions throughout your working life. This could be through an occupational pension or some form of private scheme. Whatever the source of these funds, you may be unaware that these funds can help finance your business now.

Pension based funding can provide valuable finance to business owners throughout the UK and across all sectors of the economy.

•   A safe pair of hands - fully compliant and regulated by the FCA
•   Growth and income into the pension remain tax free
•   Our specialist provider is a leader in the field, having worked with SMEs for more than 30 years
•   No need for personal guarantees or charges over domestic property
•   Tried and tested – our specialist provider has helped more than 2,500 clients invest £250 million in their businesses

What are the advantages of leasing?

There are several great advantages when leasing equipment, including not having to pay the full cost of the asset upfront, thereby releasing much needed funds. Leasing may mean you have access to a higher standard of equipment, which might be too expensive for you to buy otherwise. Upgrade immediately - Upgrade your school’s technology, equipment and facilities immediately, without the need to save up your budget to buy upfront. The asset is effectively paid for over the fixed period that you use it, which helps you budget for the future. As monthly rental costs are usually fixed, it can be easier to forecast cash flow.
What are the requirements of the pension fund?

Your Combined pension funds must have a minimum of £50,000+.
What level of funding can be achieved?

Up to 65% of the combined pension values.
Do I have to provide security?

Secured and unsecured options are available.
What are the repayment timescales?

Up to 5 years and the loan can be repaid at any time without charge
What are the repayment options?

Monthly or annually, depending on the type of funding.
What are the advantages of leasing?

There are several great advantages when leasing equipment, including not having to pay the full cost of the asset upfront, thereby releasing much needed funds. Leasing may mean you have access to a higher standard of equipment, which might be too expensive for you to buy otherwise. Upgrade immediately - Upgrade your school’s technology, equipment and facilities immediately, without the need to save up your budget to buy upfront. The asset is effectively paid for over the fixed period that you use it, which helps you budget for the future. As monthly rental costs are usually fixed, it can be easier to forecast cash flow.
What can I use the funds for?

Any commercial reason, including for start-ups.
What interest rate will I pay?

The interest rate is fixed and is based on the underlying risk associated with the funding
How long will it take to receive a decision?

A fully costed proposal will be sent over after a face-to-face meeting
How long before my business receives the funds?

Your business could receive the funds in 6-12 weeks from first contact to cash in the business.
What service will I receive?

There are no upfront fees for the consultative phase of Pension-led funding. If it transpires this type of funding is not appropriate for your situation, there will be absolutely no charges. If you decide that this is suitable for you and your business, a dedicated consultant will be allocated to you for the entire process and for the life of the relationship.

To see if Pension based funding is suitable for you and your business, please either complete the form below or call us on 01572 729 729. We will pass your details to our specialist provider who will be able to assess your suitability and show you the benefits of this unique financing option.