Pension led-funding and Startup4ten coaching and mentoring services

Early stage businesses are notoriously difficult to arrange finance for. At the same time, the founders usually have tremendous energy and enthusiasm.

Matching exciting start ups with a viable funding source and the coaching and mentoring they need gives them the kind of start that can boost their chances for success.

Money and advice. It’s a winning combination!

The Startup4ten Online Accelerator has been designed to be affordable and accessible to everyone who wants to invest in their own future, and its role is pivotal in helping the entrepreneur make good decisions based on their objectives, the business landscape and the available resources.

There is no lack of entrepreneurial talent or good ideas, but implementation is key and that requires a blend of many things. There is also a lot of “business noise” out there for the entrepreneur to filter and the Accelerator keeps them focused on what is important to long term success, helping the business to manage this “noise”.

Pension-led funding is pleased to recommend the coaching tool, Business Basics™ as it provides a simple framework for entrepreneurs to work with and this integrates to a coaching and mentoring team who have all run successful businesses themselves across a range of industries. They bring business reality and the knowhow gained from solving different business challenges, as opposed to business theory.

Working with the framework and a coach from the Accelerator Team who has realbusiness experience, provides a blended learning approach, helping the entrepreneur and their team to see the business from a different and wider perspective and this helps the business to fulfil its potential.

As well as the online programme and one-to-one coaching, the team also host online sessions on different topics which are only be available to companies enrolled on the Accelerator. As well as acting as a vehicle for learning, these group sessions can also help entrepreneurs to build their business network from within the Accelerator and you never know what opportunities can come out of the connections you are still to make in life.

You will find more detail on the website www.startup4ten.co.uk.

A rich seam of opportunity

In various earlier pieces we have looked at how, very often, economic, and financial crises lead to
a spike in individuals deciding to set up their own business. For those involved in providing
services to SMEs this can be very good news indeed as, clearly, hundreds of thousands, if not
millions of new businesses will need a ll kinds of products and assistance, one such being funding.

Within this cohort of opportunity there is a really important subset who have, statistically speaking,
had the highest success rate in establishing and growing a viable new business from start-up to
maturity – the “Olderpreneurs”.

Olderpreneurs, as the press has dubbed them are, loosely, over forty five years of age and have
the distinct advantage of considerable workplace experience and connections when establishing
their own enterprise. They also, usually, have personal assets to leverage when getting started so
funding is easier to achieve. Paramount among these useable assets is an accumulated pension
pot from earlier employment which can be deployed, immensely effectively, to fund their st art up
using Pension led funding. This is great news for both them and the introducing advisor.

Don’t miss the opportunity. When talking to clients who may need funding, either to start or grow,
look out for the signs:

  • Older individual?
  • Has assets in a pension somewhere?
  • Looking for finance?

The above is a perfect mix for an introduction to Pension led funding. Earnings for you and, of
course, a very grateful client.

Happy days.

Client Ecco Gelato featured in Business Insider

Over-55s are living longer, more active lives. In business, this is translating into more people at the end of their career who can’t resist the draw of new ventures.

Business Insider South West featured Andrew and Philippa Tarling in their recent article focusing on the new wave of older entrepreneurs, affectionately known as “silverpreneurs”.

To read the article in full click here.

A broker’s journey – Nic Franklin, Franklin Commercial Finance Ltd. (Synergy)

“It was a doddle”
This is how Nic Franklin, described his experience of brokering a deal for his client utilising Pension-led funding. 

The client’s  situation:
The client came to Nic looking for a £650k development loan to build commercial premises on a site they had already purchased using their own cash via their development company, GDV £1.1m.

 

They had secured a 15-year pre-let to the Coop & the intention was to sell the investment on completion.

Enter Nic:

 Nic had previously  worked with this client, an experienced developer, over a number of years, and once fully briefed,  carried out the usual due diligence, gathering the relevant information to assess the proposal. The wealth statements revealed that the directors both had significant private pension funds, totalling around £1.5m.

He approached four lenders for terms on a ‘traditional’ development loan basis and Clifton Asset Management (CAM) for terms for a Pension-led funding facility.

The lenders responses fell well below the client’s requirement, which would only be achieved if the directors were willing to give security over other properties in addition to the development site.

Nic contacted Tom Whitlock initially to discuss the Pension-led funding option, following which a telecon was arranged between Nic, the clients, their own IFA and Clifton adviser, Dave Bentley.  This was swiftly followed up by a face to face meeting, after which it became apparent that a PLF facility would be the best solution for the client.

Rationale as to why PLF was the right decision for the client:

  • They were able to raise the full amount required.
  • The client had total control of the funds – they were able to draw down the full amount when they wanted it & there was no requirement for a building surveyor to monitor the scheme as there would have been with a bank-led facility. 
  • The interest charges stayed “in-house” funding their pensions as opposed to a funder.

What happened next?

“Following that face to face meeting, Dave did all the running around, liaised directly with the clients & their IFA to arrange the facility whilst keeping me updated throughout the process.”

Nic only got involved during the negotiations on the fee structure, which were all conducted through Dave.

The client received all of the £650K of funding required.

Nic’s commission from CAM was agreed at just under 1.25% (£8085).

Final words from Nic

“I wouldn’t hesitate to recommend or use CAM / Pension-led funding in the future. Not only was it a good experience and great outcome for my clients, but the process and professionalism from Dave and the team at Clifton Asset Management was second to none.”

Would you dip into your pension pot to start a business?

This was the question that was asked in a recent “This is Money” feature.

The article focused on Pension-led funding, and how we are supporting entrepreneurs over 50  to fund SMEs.

 

Recent data from the Office for National Statistics showed that so-called olderpreneurs have set up more businesses than any other age demographic in the last decade.

Entrepreneurs over 50 have risen by more than 700,000 from 1.47 million in September 2008 to almost 2.2 million in December last year.

The article focused on two of our clients:

Click here to read the article in full