Looking to a small self administered scheme (SSAS) might be a shrewd move when seeking cash flow assistance in the form of a pension scheme loan as the interest you pay will be to your SSAS, which will help ultimately increase your retirement pension.
A small self administered scheme is a pension scheme established by the operators of a business, who appoint themselves as members and trustees. They dictate investment policy and ultimately benefit from the proceeds. That investment policy can range from investing money in shares to loans to the business. By having a pension scheme loan to a business from a SSAS, the small business not only gets tax breaks on interest repayments but the pension scheme loan terms and conditions can be set favourably by the SSAS.
Raising finance has been tough for businesses during the credit crunch. Traditional sources of finance are tougher and lenders are cautious in dealing with any new loan applications.
SSAS, Small self administered pension scheme, offers businesses with an alternative source of finance during the credit crunch. Pension Practitioner .Com has seen an increase in the number of professional advisors recommending SSAS.
“A small self administered scheme is a pension scheme established by the operators of a business, who appoint themselves as members and trustees. They dictate investment policy and they ultimately benefit from the proceeds. That investment policy can range from investing money in gold shares to loans to the business. By having a loan to a business from a SSAS, the small business not only gets tax breaks on repayments but the interest terms and conditions can be set favourably for the pension scheme.”
Pension Practitioner .Com the UK’s No 1 SSAS administrator offers a neat solution for a SSAS to make commercial loans back to the business. Businesses can find out more by visiting http://www.pensionpractitioner.com or by calling freephone 0800 634 4862.
Original Press Release submitted by:
http://www.kronikmedia.co.uk
