What is Pension Led Funding?
Pension-led funding allows business owners to invest existing pension funds in their own business. Once the funds are introduced into your business you can use them in many appropriate ways, whether to invest in new machinery or software, recruitment, a franchise business, or to provide working capital.
How much of my pension can I use in my business?
Depending on your circumstances, you could invest up to 65% of your pensions into your business
Are there age restrictions?
I’ve got more than one pension, can I combine them?
Yes, Combining pensions will increase the amount you could potentially raise.
What rate of interest will I pay?
The interest rate has to be commercial, although this will be accruing back in your own pension fund.
My business partner/spouse also has pensions, can they contribute to this?
Your business partner/spouse can also utilise their pensions to invest in the business.
My business is a start-up, can Pension Led Funding work for me?
We do have options for businesses in the start-up phase.
I’m looking to buy an established business, can I use Pension Led Funding to achieve this?
Yes. Company takeovers are possible using Pension-led funding.
What happens to any funds that I don’t invest in my business?
The balance left in the pension will continue to be invested at your discretion.
Will I have to pay tax?
Pension Led Funding is a commercial transaction between your pension and your business. Tax may be payable on pension drawdown.