Pension-led funding: 10 things you need to know

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adam tavener
clifton asset management Plc
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Despite the government’s best intentions, four out of 10 small firms were refused banking facilities in the second quarter of 2012, explains Adam Tavener.

recent University of Surrey report described SME attitudes towards banks as “ranging from disappointment to contempt”. As a result, small businesses are seeking alternative sources of non-traditional business funding.

Pension-led business funding offers a sophisticated alternative involving business owners’ accrued pension benefits to back their own organisation.

However, this form of finance appears to be a well-kept secret. In research commissioned by Clifton Asset Management, almost half of business owners turned to their accountant for funding advice, but almost three quarters were unaware that they can source finance directly through their own pension funds. A recent article on AccountingWEB also illustrated how there is a real appetite from accountants to find out more about this innovative form of finance.

So, for those small businesses and accountants advising clients on the alternative funding options available, what are the top 10 aspects of pension-led funding?

Register with AccountingWEB for free to read the rest of the article, which includes:

  • The options
  • The rules
  • Security
  • Using intellectual property (IP)
  • Appropriateness
  • Researching funds
  • Pension benefits and self investment
  • Scheme structure
  • Timescales
  • Cost vs benefit

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