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Taylor Patterson is part of the furniture at Langley Interiors

Langley Interiors prides itself on the quality and craftsmanship of its products, and it was this consideration for attention to detail that demanded a fresh approach to their strategic financial planning.

Based in Bolton, Langley Interiors designs, manufactures and installs bespoke fitted furniture and home installations. For over 40 years, the company has supplied individually-crafted pieces of furniture for bedrooms and bathrooms as well as complete solutions for home offices and media rooms.

Having worked with Taylor Patterson for nearly 20 years, Langley Interiors was keen to maximise the benefit of their SSAS pension fund whilst taking into consideration the requirements of the business in the current economic climate.

The company initially wanted to review their finance options, but this appeared very expensive as banks were becoming quite restrictive in lending criteria.

Debra Langley, Financial Controller at Langley Interiors, says: “As the business is enjoying a continued period of growth, we were keen to take advantage of this opportunity to expand and upgrade the resources available to us, such as machinery and equipment.

“As the banks were only offering lending on unfavourable terms due to the economic downturn, we began to think of alternative ways to raise the necessary funds.”

With the company keen to eradicate any debts owed, Taylor Patterson advised the company to use their SSAS pension fund in a similar way to a bank and lend their company the money instead.

In order to do this, it was agreed that the directly held commercial property was more than sufficient to meet the strict security requirements imposed by HMRC on SSAS loans. The loan to the company from the SSAS was established in October 2012, providing the company with liquid funds to purchase new machinery and grow the business.

Over the coming months, Taylor Patterson continued to discuss retirement planning and growth strategy with Langley Interiors. Having determined that the company was still expanding, it was agreed that Taylor Patterson could provide the company with more cash to fund their continued growth. This was achieved by purchasing the directly held commercial property using the SSAS and removing it from the company’s balance sheet as an asset.

Keith Pressler, Director at Taylor Patterson, explains: “After purchasing the commercial property using the SSAS pension, we then agreed to repay the loan to the company – held via the SSAS – much earlier than originally anticipated. To do this we used the property as the repayment vehicle, thus swapping bricks and mortar for eradicating the company’s debt.

“From the residual balance on the property, we made an in specie contribution on behalf of one of the SSAS members. This helped to build up their retirement pot, and due to the tax-efficient contribution, it allowed the company to benefit from corporation tax relief.

“Finally, we amended the investment strategy in the SSAS and used an element of the cash held in the fund to buy the residual amount of property left over, providing a significant amount of cash to allow for further growth opportunities.”

The SSAS will now benefit from a rental return paid by the tenant, the company itself, safe in the knowledge that the rent will continue to be paid and providing a steady investment return to the pension fund.

Debra adds: “The solution provided by Taylor Patterson has not only made Langley Interiors much more financially secure and independent, it has also enabled us to be much more flexible in order to accommodate the needs of the business both now and in the future.”

If you would like to find out more about SSAS loanback facilities and how they can benefit your business, please call Kerry Houghton on 01772 555073 or email Kerry.Houghton@taypat.co.uk.

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