Pension fund borrowing on the increase
BORROWING from pension funds to finance business growth is becoming more and more common, a Midlands adviser claims.
Jonathan Hovers, a director at Lichfield-based Pool House Professional Advisers, said that with availability of credit being a big issue for banks, businesses are increasingly turning to ‘loan-back’ options from pensions to help them grow their business.
He said: “There is so much happening right now in the financial sector that it is affecting businesses’ ability to access funds to help them grow or diversify their offering. In short, bank lending has decreased dramatically so businesses may find it hard to access any, or all, of the funding they might need.
“This is where the option of a loan-back facility has proven a very popular choice to remove or complement bank borrowing.
“A SASS allows the loan-back so that investment options including commercial property purchase can be facilitated. For example, the purchase of the company’s main trading premises provides a very tax efficient way of owning commercial property.”
Pool House Professional Advisers, a wealth management firm, is headed up by Hovers and fellowfounder David Burns.
