If you are looking at alternative business funding, utilising a pension is a tried and tested route and an excellent alternative business funding solution.
Using pensions to self-fund not only provides the investment that a business needs, but it has the added advantage of growing a pension fund at the same time.
How using a pension for funding works
Pension-led funding works via a SSAS – a small self-administered scheme. A SSAS has the agility to suit owner-managers who want their pension to work for them and their business.
Your company (or companies, if you have more than one) set up a SSAS alongside a trustee company, and others – such as fellow directors, or key members of your staff – can also join.
The pension fund is then highly flexible. You can determine where the funds are invested – for example in your company as a loan, or perhaps purchasing the premises you trade from.
The repayments on the loan, or rent for the premises – all set at a commercial rate – are then paid back into your pension, by your company.
Pension-led business funding not only provides you with the funds you need, and grows your pension pot, but offers tax advantages and flexibility not available with other types of lending.
A SSAS may sound complicated, but at Hartsfield we have a vast amount of experience in setting up this type of scheme, as well as exploring other alternative business funding sources, so please get in touch to discuss how we can help you.