The warm weather of late has meant business for many parts of the local tourism industry has been booming. When the sky is blue and the sea is warm, there is no better place to enjoy such a holiday and the owners of campsites, hotels, B&Bs and other businesses have been reaping the rewards.

Some of these businesses would do even better if they could invest in expansion or in improving their products and services. Unfortunately, the banks are still not easily lending, however, and many businesses lack the cash to fund it themselves.

But there may be options available. Look again at the hundreds of campsites and hotels around our coast and consider that the profits of some of these businesses will be contributing directly to the pension funds of their owners. What is more, the business will possibly have benefited from a cash injection from a pension fund in turn.

It is a rapidly growing but still often misunderstood concept within the world of pensions and self-invested personal pension funds (SIPPs). These vehicles can easily and legitimately be used to invest in a wide range of commercial ventures.

Although most commonly associated with commercial properties, SIPPs can as easily invest in anything from hotels to forestry plantations, fish farms, non-listed shares and…. campsites.

Such investments have two major benefits. Firstly, holding such a tangible asset in a SIPP in this way generates clear revenue streams that directly boost the overall value of a pension every quarter. It is easy to see, understand and, ultimately, should make for a more comfortable retirement. That has a lot of appeal to people.

Secondly, businesses can use such schemes to inject cash into the business. Businesses constantly bemoan the fact that the banks are still not lending – this can represent a perfect alternative.

Pension funds can borrow up to 50% of their total assets. Using this cash, assets, such as commercial office premises, can be acquired by pension funds directly from businesses. The business gets a cash injection; the pension fund reaps the rewards of the future revenue streams associated with that asset.

The investment options now available around pension funds have moved on a lot further than many people realise. Good advice from professionals is critical. But if done correctly, a little innovation can reap substantial rewards.

To discuss options around investing your SIPP contact Bevan & Buckland Wealth Management.