Lending money to your SMSF

One of the lessor known benefits of having a SMSF is the flexible financing options that are available.

Many SMSF trustees still don’t realise they can actually lend money to their SMSF and charge the sort of rates achieved by banks and other financial institutions.

It’s possible to lend money to your own SMSF through a Limited Recourse Borrowing Arrangement, this is commonly called a member loan.

The structure is simple, instead of your SMSF going to the bank to get a loan to buy an asset, usually a property, your SMSF can lend money directly from you as a member of the SMSF.