Pension Led Funding
If you have an old pension or a SIPP you can use that to invest in your business via a loan. The process is subject to HMRC rules and so the loan will need to be secured, be at a commercial rate and for a defined term.
WHAT IS REQUIRED
Contact us to discuss the requirements for this product.
WHY CHOOSE IT?
Contact us to discuss the suitability of this product for your business.
Typically, you can receive a cash advance loan equivalent to your average monthly turnover. You repay this amount, plus a fee, by agreeing to give a small percentage (usually 10-15%) of all card receipts to the advance provider until the finance is paid off and the balance is cleared. This is done automatically via the card terminal with each transaction, and you don't have to change your card processor. Unlike traditional bank loans, there are no time constraints on this. In quieter times when less money is coming through your card terminal, you'll pay less money back. In busier times when more money is coming through, you'll pay more money back.
FAQs
What is the intellectual property in my business,
This can be patents, logos, trademarks, databases, designs, copyrights etc. We can help you get this valued.
How do I value the intellectual property in my business?
This will be done for you by professional valuers.
Can I give my business an interest-free loan from my pension?
No, HMRC rules on these loans specify it has to be at a ‘commercial rate’; typically 6% is used but the higher the interest rate, the greater the return to your pension.
How much does it cost to arrange?
There is no cost to explore if this is suitable for your business. If it transpires it is not then you will not be required to pay anything. Should you choose to progress the cost depends on the value of your pension fund but typically so set this up costs £5,000-£8,000.
How long does this take to arrange?
Approx 4-8 weeks depending on how quickly you can respond to queries.
Choice Loans is a broker, not a lender. We will connect you with a lender suitable for your needs or, if appropriate, a specialist broker. We do not charge you an upfront fee but, if your application is successful, a broker commission may be charged.
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