Until recently the big banks were the first stop for businesses wanting to borrow money, but the market place is changing.
Alternative funders are increasingly becoming the first choice for businesses worried the banks will not lend. But how do you chose which alternative lender is right for you? What services do they provide and how do the charges stack up?
SIPPclub’s Funding Snapshot has been designed to help you weigh up the different options that each form of financing presents. It compares these funding methods and provides a comparison of figures to make sense of it:
- Bank Loan
- Pension-Led Funding
- Bank Overdraft
- Invoice Discounting
Many of these funding types can also be used in combination, allowing you to mix and match your needs with what works best for your business. Download the Funding Snapshot here.
In the report, you’ll see that one of the most innovative and cost effective methods is pension-led funding. It works by deploying funds from the business owners’ own pension pot. The funds will be repaid to the pension scheme with interest at a commercial rate. Typically, this is achieved by the pension making a loan to, or purchasing an asset from the business, with it subsequently making loan or lease payments. Pension-led funding utilises value in commercially owned assets including intellectual property. No personal guarantees are required, but some future pension benefits may be at risk if repayments to the scheme are not made.
Brian Bennis – SIPPclub
About SIPPclub: SIPPclub reveals four areas outside of the stockmarket that offer high earning opportunities to SIPP investors. Among them is pension-led funding. You can watch a short movie on pension-led funding here.