Where the money comes from, how much your company can borrow, and what happens from first call to funds in the bank. In plain English.
This is a specialist funding solution and we work with banking partners such as Barclays Bank to provide an account which combines your pension funds, old or current.
This provides the foundation of capital to support your business. Specific legislation then allows your company to borrow up to 50% of the funds held in the account in the form of a loan of up to 5 years.
Your company repays the loan at 5.00% fixed over up to five years. Every penny of interest goes back into the account, where it also sits free of tax.
As a multi-pension fund administrator we set up the account and manage all the administration.
The pension fund can lend up to half its value. Enter the total of what you (and any fellow directors joining) have built up, from old and current pensions.
We handle the set-up, the paperwork and the regulatory checks. You make the decisions.
We open a dedicated Barclays account for your company's fund and move your existing funds into it. Your company can add to it at any time. We handle all the paperwork and transfers from start to finish. Setting up can take several weeks, so it is worth starting early.
We prepare the loan agreement, the security documents and the approval forms, and complete every regulatory check before any money moves. You and your fellow directors simply read and sign, and we explain each document in plain English along the way.
Your company repays in equal monthly payments over up to five years and can then start the process again if needed. Alternatively, your company can take further loans as its needs change, up to the 50% limit, each with its own repayment schedule, and can repay early at any time with no charge.
Both put cash into your business. The difference is who decides, what they want as security, and where the interest ends up.
| Our facility | Typical bank business loan | |
|---|---|---|
| Credit checks | No credit search. You confirm the company can repay | Credit search on the company and usually the directors |
| Interest rate | 5.00% fixed for the full term | Set by the bank; often variable |
| Security | Charge over company assets or shares, plus a personal guarantee | Often a debenture plus a personal guarantee |
| Amount | £25,000 to £500,000, up to 50% of the pension fund's value | Based on the bank's affordability assessment |
| Term | Up to 5 years, equal monthly repayments | Varies |
Every loan has to follow the regulatory rules. As your administrator, we check each one before any money moves and keep the paperwork in accordance with regulations.
The questions UK company directors most often ask about our facility.
£25,000 to £500,000. 5.00% fixed. No credit checks.
