“Why wouldn't someone want to obtain competitively priced finance for their business while at the same time ensuring all debt servicing costs remain within their own beneficial interest rather than go to a third-party lender?,” he said.
“As long as the need for the loan back is sound, robust and not putting the business or pension scheme at risk, I can see no reason for advisers to dissuade clients from continuing to use the loan back facility.”
But Bridgeman warned individuals must take care to choose a scheme administrator and professional trustee with a clean track record and technical expertise.
He said people should look for “a scheme administrator with skin in the game” that takes the liability rather than a “practitioner or consultant that will transact without putting their neck on the block”.
amy.austin@ft.com
