UK spending on infrastructure has been increasing, something that was needed to sustain economic growth and also to connect the north and south of the country and create more economic hubs. Vital projects like HS2, Crossrail or Hinkley Point are underway but in a post Brexit world how will this type of work continue?
More than £1bn of the funding for Crossrail came from the EU, so that raises the question of how projects will be funded in 2020 and beyond Finding replacement funding on the right scale could be challenging: the Government needs to put finance plans in place now, not only to support growth but to show that support for this crucial industry it is being taken seriously.
There is another option. Specialist alternative lenders are well positioned to offer support to the sector that the banks or Government may struggle with. The alternative lending landscape is ready to step up and support these projects. Using our specialist Consruction Finance, designed for funding contractual debt, Nucleus recently financed a £70m project that kick-started the construction work at Hinkley Point. Even though there were contracts in place, the banks could not finance it. Without Nucleus’ facility, the entire project would have stalled.
As a sector, is there a chance for alternative lenders to really excel here? Can they support businesses whilst also driving growth in our economy? We think so.
To find out more about our Construction Finance, click here.
View the original article here: https://business-reporter.co.uk/2017/08/29/exploring-alternative-business-finance-issues-nucleus-commercial-finance/