Loanbacks are a successful way for you to help with the cashflow needed to develop your business further, without having to approach a bank.
Instead, a loanback allows you to loan funds from your pension arrangement to your business, in return for capital and interest repayments.
There are several provisions that must be satisfied. The term and interest rate must be defined and there are provisions that must be satisfied regarding the company’s status and financial health. Contact us to learn more.
It is important to be aware that SSAS’s are not regulated by the Financial Conduct Authority. The investments within them can go down as well as up and they may not have a capital or return guarantee. Any investment decisions, including loanbacks, should be taken with advice, given appropriate knowledge of the investor’s circumstances. If you are unsure whether an investment is right for you, please seek advice or contact us and one of our advisers will be happy to talk to you.