Pension Led Funding

Pension Led Funding is “a key form of alternative finance for growing businesses”.

Many entrepreneurs and business owners are struggling to arrange finance from banks and other third parties.

There are a number of alternative sources of funding available to businesses and one of the fastest growing options is Pension-Led Funding.

What is it?

Pension-led funding allows a business owner to make use of liquid funds held within a UK Registered Pension Scheme in order to finance their business in such a way that there are no undesirable tax charges.

This is a business financing mechanism and not a method of putting pension funds in the hands of individuals. It should be used to enhance the business and funds should not be used to provide abnormal reward or dividends.

Advice has been issued by the Pensions Regulator with regards to a practice known as pension liberation. Any strategic tax advice given by the Enterprise Tax Centre is set out in line with the relevant pension and taxation legislation. Pension-led funding is appropriate for most types of businesses and we recommend that you speak to an Independent Financial Adviser (IFA) to establish whether it is right for you.

What can it be used for?

There is no limit on the size of the business to be funded. Any money successfully acquired via pension-led funding can be used within the business to provide:

  • Working capital
  • Expansion
  • Acquisition of target business
  • Plant and machinery for use in the business
  • Purchasing commercial property

Why Pension-Led Funding?

  • Allows you to secure funding for your business
  • Tax efficient
  • You remain in control
  • No limit on size of business that can use pension-led funding

Creative Wealth have assisted businesses across the UK in realising the opportunities available through PLF.

If you require access to capital, but:

  1. Bank (and traditional sources) lack interest?
  2. Bank (and traditional sources) are too expensive?
  3. Bank (and traditional sources) require aggressive personal guarantees?
  4. Have existing pension fund(s) of £60k +?


If so, you may wish to consider PLF. Contact one of our consultants today for a no obligation review, to see if PLF could be the answer to your business funding problems.


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Read More:

pdfWhat is Pension Led Funding

pdfPension Led Funding – Introduction

pdfDownload our free PLF fact sheet