Company loans are an important mechanism for business owners to consolidate and invest. Whilst there are many company loan providers, many business owners rely upon their business bank to provide company loan facilities. The recession and the repercussions of the banking crisis have made it increasing challenging for many business owners to obtain a company loan and it does not appear that the situation will change for some time.
This has caused many business owners to look for alternative providers of company loans. Self investment is a mechanism many business owners are utilising to provide company loans, through the use of registered pension schemes. There are specialist pension schemes tailored for business owners, enabling them to make specific investment choices which can interact with their businesses, including a company loan.
Some of the investment choices are:
• Company Loan
• Commercial Property Purchase
• Intellectual Property Purchase
• Share Purchase
The ability of a pension scheme to provide a company loan will be dependent upon the specific business and its requirements. What a pension can offer is flexible investment choice, not just a company loan, without having to rely upon third party financiers.
For further information and advice on the provision of a company loan by a pension scheme, please contact us.