Using Your Pension To Save Your Business

As the lending from banks and other major credit avenues become more and more sparce, some directors are utilising their pension pots to keep the business running, using something called Pension Release.

The Directors gain access to part of their funds through the tax free cash entitlement. By doing this the cashflow of the business is increased, leaving the directors to keep there business afloat.

It is worth noting that this problem has only become apparent since the "credit crunch", where banks have been tightening their lending criteria, to those who had previously been good customers.