Keeping closer control of your business funding

At a time of uncertainty, you want to keep closer control of your business – and that includes funding.

I think we all agree, the current outlook can safely be described as “challenging”.

But whether we are heading for a hard or soft landing, clean break or any other parting of the ways, opportunity won’t disappear overnight, there will be openings whatever the trading landscape looks like in the months and years ahead.

Where does that leave you and your business? What if you are bullish about your outlook or you need funds to help your company ride out the current storm?

Others may decide to take a cautious approach and watch and wait. But those business owners still need to be prepared when their break appears.

What if I told you there was a form of finance that could take some of the uncertainty out of backing your business.

What’s more, the interest on the finance provided is paid back to the pension and, just as importantly, you know exactly how much it will cost you and how long you have to pay.

How can you be sure of that? Simple, because you have a say in setting out the repayment terms.

As I said, you are repaying yourself and, in these times of falling business confidence, you retain control of the borrowing – and your company.

Pension-led funding has now helped more than 2,500 UK SMEs finance their own businesses to the tune of more than £230 million and is recognised as one of the largest providers of alternative business funding in the UK.

Why is PLF different? Company owners or directors use one or more pension pots placed in a SIPP or SSAS to make an investment in the business.

There are no charges over domestic property or personal guarantees. The pension can lend against a range of assets including Intellectual Property such as databases, trademarks, know-how and goodwill.

Pension-led funding carries the same risks to the borrower as other commercial credit facilities so you should always speak to a professional adviser, but remember, you are borrowing from yourself – the interest on the funding being paid back into the pension scheme, rather than to a third party.

Anthony Carty is Group Financial Planning & Business Development Director at