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Using a SSAS Loan to Address Unsecured Debt

A SSAS allows directors to lend money from their pension scheme back to their own limited company, subject to HMRC rules.

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SSAS Key Features

Loan value up to 50% of SSAS assets - Maximum loan term 5 years - Interest payable at a commercial rate (paid back into the pension) - Loan must be secured (often via a debenture or property charge).

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Benefits

The director is effectively borrowing from themselves - Interest payments enhance pension value, not a bank’s profits - No adverse credit impact on the director personally - Maintains full control of the business - Avoids insolvency markers and reputational damage - Allows debts to be settled or refinanced cleanly.

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Outcome

Unsecured debt can be repaid or consolidated - Business stabilises without external creditor pressure - Pension grows through interest income - Director avoids insolvency and preserves future borrowing capacity

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​​​​​Conclusion

For directors facing unsecured debt, a SSAS loan often represents a far more favourable solution than a CVA or Bankruptcy. It preserves control, protects reputation, avoids insolvency markers, and converts a debt problem into a pension-enhancing strategy.

Even where a CVA is unavoidable, a SSAS loan can significantly improve outcomes, shorten recovery time, and support long-term financial resilience.​​​