Pension-led Funding

Pension-led business funding is a sophisticated form of commercial finance which offers an alternative to traditional business funding, such as bank loans or overdrafts.

Pension-led funding does not require personal guarantees. It can include Intellectual Property (IP) as a legitimate asset class, broadening a business’s borrowing opportunities further.

A business owner may have accumulated funds in a variety of pensions throughout his or her working life. This could be through an occupational pension or some form of private scheme.

Whatever the source of these funds, business owners might be disillusioned by the lack of performance of their pension funds and their inability to use them productively or when they need them the most. They may be unaware that these funds can help finance a business ahead of retirement.

Whatever the funding method, there has to be some element of guarantee to the lender. Some guarantees are more onerous than others. In almost every case, a first charge is made to secure the loan. The size of the charge can vary depending on the type of loan and other guarantees required.

Pension-led funding provides a finance option that is very different from many other sources of finance by allowing you, the business owner, to exercise a level of control over your business finances that other finance options will not give you.