Pension Led Funding

Invest your pension in your business

Complete this form to get started with Pension Led Business Finance

How does Pension Led Business Finance work?

Think this pension-led finance option could work for you? Here's what you need to know...

  • This product allows you to set up a SSAS for your business, then as a trustee of the fund lend to your business.     
  • The loan must be secured on an asset. For established businesses, intellectual property is the most commonly used asset
  • The loan term can last for up to 10 years and must be at a commercial rate (e.g. 6%)
  • Pension led business finance is heavily regulated, so arranging finance can take 6-8 weeks    

Frequently Asked Questions


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.

What is needed to apply

Applying for pension led business finance may take time, but it relatively straight-forward. Here's what you will need in order to apply...    

  • Eligibility Criteria You must be a director or your own business. You must have a pension pot with a transfer value of at least £80,000. Your credit history or proof of income is not relevant. 
  • Documents Required Initially no documents other than proof of your pension are required. 
  • Additional Comments This process takes 6-8 weeks to complete as it is a highly regulated transaction. There are also fees involved which will depend on the size of the pension pot. 

Investing your pension in your business is becoming an increasingly popular option amongst directors and business owners. Today's business loans typically come with high interest rates, while seeking investment from others can be a scary and uncertain prospect. 

Pension led business loans allow individuals to access comparatively cheap finance for their business, while helping their pension achieve an above-market return if their enterprise proves successful.

There are of course risks involved. Should the business fail, pensions can be lost. Choosing a pension led business loan is not a decision which should be taken lightly. Speaking with qualified advisors is, therefore, an essential part of ensuring this funding approach is right for you.

If you'd like to learn more about how pension led business finance works, or want to discuss the prospect of taking this route yourself, we're here to help. Contact our business finance specialists to review this approach and explore other business financing options today.

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