Owners Take Big Risk Using Pension to Finance Firm; All the News and Analysis for Ambitious Entrepreneurs Small Business

The Mail on Sunday (London, England), June 30, 2013 | Go to article overview

Owners Take Big Risk Using Pension to Finance Firm; All the News and Analysis for Ambitious Entrepreneurs Small Business


Byline: HELEN LOVELESS

A GROWING number of small business owners are using private pension funds to provide capital for their firms. But while investing your retirement pot may be the solution for some, many advisers warn it could expose entrepreneurs to huge risks.

The latest Bank of England figures show that net lending to nonfinancial firms fell [pounds sterling]700million in May and many are looking for other sources for investment.

Bristol-based adviser Clifton Asset Management says it has helped more than 2,500 small firms release funds of about [pounds sterling]250 million from their pensions to back their companies, up from 1,200 in 2012.

Pension funding works by using your pension to buy an asset from your business, such as property or customer databases. But firms can also 'sell' intellectual property (IP) such as inventions, designs or ideas, though the value of these has to be assessed by an independ-ent valuer. Government figures show there is [pounds sterling]54 billion of registered intellectual property in the UK, but Clifton's Adam Taverner estimates the value to be 'at least five times this'.

He said: 'Our research shows 84 per cent of business owners have never had an IP valuation, while nearly half don't think their firm holds any IP value. Most small firms are unaware of the true value of intellectual property and its potential as a source of funding.' GAMBLing.' One benefit of using a pension fund to buy IP in a business is that any increase in the value of IP will be free from direct taxation, as it is in the taxfree pension wrapper. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Note: primary sources have slightly different requirements for citation. Please see these guidelines for more information.

Cited article

Owners Take Big Risk Using Pension to Finance Firm; All the News and Analysis for Ambitious Entrepreneurs Small Business
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen
Items saved from this article
  • Highlights & Notes
  • Citations
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Search by... Author
    Show... All Results Primary Sources Peer-reviewed

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.