Please note all of the characters in these stories are fictional. However all of the circumstances that have been mentioned in these stories can and have happened in the past.
Finance your business
For many owners or senior executives of small and medium–sized enterprises, their personal finances are closely linked to those of the business. That’s why at Essential IFA we take a holistic approach, offering expert advice on both individual and commercial financial matters.
SIPP loans
A Self–Invested Personal Pension (SIPP) offers you greater flexibility in your pension investments, including the option to use your pension fund to finance or part–finance the purchase of a commercial property. Many business owners are taking advantage of this facility to save paying rent to a commercial landlord, while giving their retirement fund the added security of being invested in bricks and mortar.
General business loans
For all sizes of business, we can offer expert advice and support to help you apply for general business loans and overdraft facilities. We have established relationships with a number of high street lenders and can assist you in submitting loan applications, providing supporting documentation such as business plans and negotiating a competitive rate of interest.
Bob and Margaret’s story
Bob and Margaret are in their late thirties and run a small printing company, operating from an ageing warehouse in a run–down part of town next to the docks. Business has been a bit slow recently and now the landlord who owns the warehouse wants the couple to sign a new lease at a substantially increased rent.
Bob has built up a sizeable personal pension fund, but it’s not performing as well as might be expected. He’s concerned that, with the business less profitable than in previous years, his retirement plans may be affected.
Bob and Margaret’s future without expert advice
- Bob and Margaret sign a new five–year lease on their business premises at a vastly increased rent.
- To help cash flow, Bob is forced to reduce his pension contributions. With the effect of this and the under–performing investments, the couple calculate that they will have to keep on working well past normal retirement age.
Bob and Margaret’s future with expert advice
- Bob transfers his pension fund into a SIPP and uses the fund to purchase a modern warehouse unit on a local business park, with a small top–up loan at a competitive rate of interest.
- Even after paying the interest on the loan, Bob and Margaret save a fortune on rent and can invest these savings back into the SIPP.
- When they decide to retire they can sell the business premises, pay off the remainder of the top–up loan and be left with a fund which will enable them to live comfortably for the rest of their lives.