Pension Led Funding

Leverage dormant funds within your pension to raise capital

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Upon completing this form you will be contacted by a Business Funding Shop Advisor ONLY. We will not share your details with a third party or use them to process other requests.


Are you struggling to raise capital for your existing business, perhaps you need a cash injection to kick-start a new business venture?

Secured Pension Funding, sometimes referred to as Pension Led Funding, Pension Loans, Pension Backed Loans or Pension Led Finance is one of the most lucrative and flexible yet under-utilised alternative funding methods available to businesses; allowing you to borrow money from your personal pension as the director, owner or senior executive of the company and pay it back with interest.

One of the most immediate benefits of this form of funding is that unlike other types of funding, some of the interest paid goes straight back into your pension, offering the potential for significant pension value enhancement.

Setting up a SSAS is not as expensive as you might think, with a one time fee which will pay for itself as a result of interest being paid back into your pension fund.

What’s more, Business Funding Shop are competitively priced. If you already have a quote, send it to us and we may be able to beat it.

Please note, you must be a director, owner or senior executive of a limited company to utilise pension led funding. If you are not eligible, take a look at our other forms of funding.

Can be used to purchase property.

Interest is paid back into your pension.

Set up is easy and stress free.

No credit checks required.

Can be used for almost any business need.

Fast turnaround on funding.


We are here to help you with anything you need. Call us on the number below.

CALL: 0800 047 2389


Upon completing this form you will be contacted by a Business Funding Shop Advisor ONLY. We will not share your details with a third party or use them to process other requests.


“We couldn’t be happier with the way things have turned out, we are loving running our new business and can do so knowing our debts to family are paid – we are standing on our own two feet. Who would have known that the source of funding was right under our noses, in our own pensions?”

Sarah Honeywill, Fabrics Plus Ltd

Read the full case study

Questions About Borrowing From Your Pension?

If you have questions about how you can access dormant funds in your pension and use them to finance your business, we can help. Read more below or contact one of our team today on 0800 047 2389 or email


This method of accessing funds in your pension works via a SSAS – a “small self-administered scheme” which is a pension scheme set up by a limited company or partnership. SSAS’s are registered with HMRC and therefore benefit from a range of tax reliefs including:

  • A commercial Loan can be made to your own company, or a third party company.
  • Company and personal contributions can be deducted against tax.
  • No income tax due on allowable investments.
  • No Capital Gains Tax (CGT) due on disposal of investments, or the the increased value on a commercial property
  • Funds can be withdrawn with up to 25% Tax-Free starting at age 55.
  • Tax-free lump sum on death before retirement

As with all types of business funding, there are various pros and cons to secured pension funding you’ll need to consider:


  • Whilst the provider will still need to agree with your plans, secured pension funding has no real limitations on what it can be used for – offering more flexibility and independence over other types of business funding.
  • Investing your pension in a successful business can offer much greater returns on your funds in comparison to leaving it dormant in your pension pot.
  • As your business grows, your pension will increase in value.
  • Secured Pension Funding is a highly regulated market, with all funds borrowed falling within HMRC rules.
  • Turnaround for funding is fast, with an average turnaround of 6 – 10 weeks from initial quote to acceptance.
  • There is less immediate risk when borrowing from your pension in comparison to borrowing against an asset such as your home.
  • When applying for funding, you won’t be subject to a credit check.


  • As with any form of business funding, should your business fail, you will still be liable to pay back what you borrowed; this risk is amplified when using funds saved for later life.
  • You cannot borrow 100% of your pension, meaning you’ll need more funds available in your pension to borrow your desired amount in comparison to other forms of funding.

What is Pension Led Funding?

Pension led funding is a little-known alternative form of business funding that allows business owners to invest in their business against their pension. This form of business funding is not sector-specific and offers greater flexibility in comparison to traditional forms of funding.

Check Your Eligibility with No Obligation

If you’re interested in utilising a SSAS to maximise your pension, we can help. Fill out the form below and one of our expert team will call you back to explain what’s possible based on your unique circumstances with absolutely no obligation. 

Alternatively, you can email us on or call 0800 047 2389 for an immediate response.


Upon completing this form you will be contacted by a Business Funding Shop Advisor ONLY. We will not share your details with a third party or use them to process other requests.

 How Does it Work?

Secured Pension Funding makes use of dormant funds within your pension to raise capital. When utilised correctly through a professional provider, this offers cheap and flexible loans for businesses – making it a recommended source of funding for ambitious businesses.

Unlike other forms of funding, pension funding means that some of the interest paid on the finance goes straight back into your pension; allowing your wealth to grow with your business.

What’s the Process for Funding?

The most common type of pension funding is via a commercial loan, this method of funding allows you to borrow up to 50% of the value of your pension. You may also be able to receive secured pension funding via an unlisted share investment.

When using Business Funding Shop as your provider, your independent advisor will talk you through all options available and be with you every step of the way to ensure you get the funding needed to realise your business ambitions and goals.

Pension Led Funding – FAQs

Whilst every application will be treated on an individual basis, there is no age limit on applying for and receiving secured pension funding.

Yes, like any other form of business loan funding, you will pay interest on the amount borrowed. However, some of the interest paid will go back into your pension pot.

Any funds that were not borrowed against will remain in your pension pot and continue to be invested as you see fit.

Yes, you can use another director’s pension. Sometimes you might borrow in combination to reduce your individual risk.

In order to make pension funding worthwhile, you should have a pension fund of at least £100,000. If you have more funds available, you can borrow against a smaller portion of your pension, reducing the risk associated with borrowing.

You can contact your current pension provider to enquire about the value of your pension, you should also receive a pension statement once a year. Or you can ask your independent financial advisor to check for you.

If you have more that one pension, it’s advisable to combine them. This can potentially increase their worth and thus the amount of funding you are eligible for.

No, pension funding is only possible using the pension of the business owner, director(s) or senior executive(s) – secured pension funding has no impact on your workplace pension scheme.

Yes, pension funding can be used for starting, investing in or acquiring a business – we’ll be with you every step of the way to help you select the best option for your needs.

A SSAS can make a Loan to a company, a SIPP technically can but it is very difficult to achieve with most trustees. The SSAS is the more straight forward route. Also with more than one director within a company the SSAS is less expensive to administer, and more competitively priced.

A small self-administered pension scheme “SSAS”, is a type of defined contributions workplace pension that is typically set up by the directors and senior staff members of a business, offering increased flexibility and control over where pension funds can be used.

The directors can invest the funds as appropriate within HMRC investment guidelines, for example, the SSAS can be used to purchase commercial property or provide a pension loan to the company for any business purpose. A SSAS is exempt from tax and all investments made are free of Capital Gains Tax – Employer Contributions will also receive tax relief.

“What we like about this type of funding is that our repayments go straight back into our pension fund, in fact the return is far better than the original pension fund was giving us.”

Grace Haine, Grace Haine Eyecare Ltd

Read the full case study

Leading the Way in Business Funding Through Pensions

At Business Funding Shop, we’re leading the way in pension funding for business. If you want your pension to work harder for you and think this type of funding could work for your business, or you’re interested in having an honest and open conversation about if this is right for you – we can help.

Give us a call today on 0800 047 2389 or fill out a contact form below and one of our expert team will get back to you.