Asset-based lender HNW Lending has launched a short-term loan offering for SSAS loan back customers.
HNW Lending currently provides loans of up to £1m against assets such as classic cars and jewellery.
Now it is offering loans for those who wish to transfer to a SSAS for the purpose of obtaining a loan back arrangement.
HNW Lending says the process can take between three and six months, and certain business owners will want to obtain the loan straight away.
It is offering loans to cover this initial period, secured against the business, which are repaid once the SSAS loan back has been released.
HNW Lending charges interest of 1-1.25 per cent per month on the loan.
It is secured by a debenture against the company’s assets, plus a personal guarantee from the beneficiary of the pension scheme.
HNW Lending founder and director Ben Shaw says: “Many people and businesses are still finding it hard to secure credit, even if they are a low risk.
“As a result of this we have seen a growing number of people approaching us for loans against their pension schemes, which they are converting into SSAS so that they can borrow from them. Given that they are usually successful, we are happy to lend against this.”
Shaw accepts there is a risk that the SSAS loan back arrangement will not go through, and says customers need an “exit strategy” for this eventuality.