How A Recovery Loan Can Help Support Your Business

Estimated Read Time: 6 Minutes

Jessica Lambert

Recovery is the single most important thing for every business around the world right now, and with all the will in the world, sometimes hard graft simply isn’t enough. You could have the ‘perfect’ formula in place to guarantee your business succeeds, but if that formula doesn’t include having finance in place to make it all happen, then it’s far from perfect to begin with.

It’s well known that accessing finance from a place of strength is always your best bet, but after the pandemic, many businesses are not in the best position they’ve ever been in. Covid’s plight only worsened the difficulties of running a business without the right funding in place, and the multiple lockdowns that followed only exacerbated the challenges most businesses face, namely late payments.

The past eighteen months have only further solidified the argument that a business is always strongest with financial backing behind it because things sadly don’t always go to plan. Having ample amounts of cash to run your business operations as efficiently as possible should be one of your primary goals, and with a Nucleus Recovery Loan, you’ll be able to do just that!

Here’s what you can get with our Nucleus RLS loan:

  • Borrow between £30,000 and £10m (£30m per group)
  • 12 months interest-only payments
  • Choose between either secured or unsecured options
  • Terms ranging from 3 months up to 6 years

 Whether borrowing formed part of your business continuity plan or it's something you’ve only just started loosely considering, a Recovery Loan is potentially a lifeline that can help your SME survive Coronavirus now that normality is on the horizon. Here’s how it could help…  

 

Expeditious Recovery

We had to start with this one, really, as it’s probably what you care about most right now. You might already be one of the thousands of businesses we helped through over £600m worth of loans in the past 18 months alone, a borrower pre-covid or even new to Nucleus altogether (sending a very warm welcome your way if so). CBILS loan or not, the last 18 months have been focused entirely on survival, as it’s all the majority of SMEs could hope for during such a chaotic period.

But things are changing, and your business needs to make that mental switch from ‘survival’ to ‘recovery’ before it starts to lag behind its competitors. Business recovery should be your number one priority right now, but we’re sure we don’t need to tell you that.

With a Nucleus RLS loan, you’ll soon be on the road to recovery! Whether you need the money to replace stock that expired during lockdowns, to hire more staff now that things are picking up or to even stabilise cash flow, access to extra funds will take the pressure off so you can focus on recovery.

Rapid Growth Pending…

Growth might feel like an intimidating path to follow, and maybe you’d rather stay put where it feels comfortable and safe… but remember, running a business requires bold decisions, and you didn’t choose the entrepreneurial life to constantly make safe choices that won’t lead to better results.

You know your business better than anyone else. You know what makes your customers tick, what strengths to play on, what weaknesses need to be addressed and ultimately, what your business is capable of given the chance.

Funding is the primary factor between grabbing that chance by the horns and running with it versus missing key opportunities for growth and remaining stagnant for years to come. The UK economy is starting to flex once again, with the UK forecast to grow by 6.8% this year, making it the fastest-growing advanced economy this year.

If the economy is growing, so should your business. There are a few reasons why your business should start thinking about growth, but the main one is simple: normality has almost resumed yet the novelty still remains, so strike while the iron is hot!

Growing your business in a post-pandemic era won’t necessarily be easy, but it’s definitely possible. There are plenty of ways to get funding to grow your business, but a Recovery Loan is the most attractive option for many businesses right now as it’s a government-backed facility. With a Nucleus Recovery Loan, your business can start climbing the ladder to growth and hit the important milestones you’ve always dreamed of.

 

Expansion Could Be Imminent

Speaking of growth, perhaps it’s time to finally take that important next step in your business journey. Have you been planning that ‘big move’ to a bigger, better location, only for the ‘right time’ to never present itself?

Often, the right time never does actually come and hit you hard in the face. If only it was that easy – or obvious! In the famous words of Napoleon Hill, don’t wait. The time will never be just right. So, jump right in and make it as close to just right as you can by doing the preparation that’s needed, including strategic planning and securing external finance if that’s what is required.

Your dream business location could be right around the corner, you just need to head that way. Or perhaps it’s expanding into new markets that really holds your focus. Successfully breaking into new markets is often the next step for businesses once they’ve surpassed the initial growth spurt and started to level off. Your competitors have probably already considered doing the same, in fact, they might already have solid plans in place to make it all happen. Resting on your laurels won’t help you or your valued customer base, so undertake crucial market research, address the challenges your new products/services will solve and start learning how to expand your growing business.

 

A Quick Way to Solve Late Payments

If your business is constantly plagued with late payments, you can use a Recovery Loan to bypass the huge challenges overdue payments cause and put a stop to the all too familiar domino effect that typically follows. We’ve previously spoken about how to get your invoices paid quicker, and having funding to alleviate the obstacles caused by unpaid invoices is one of the first places to start.

Enhance Operations and Streamline Processes

Improving business efficiency often dominates corporate strategy planning, and it should be at the top of your business agenda too. Technology is leading the race towards streamlined business operations and your business would practically be living in past if it’s not yet adopted any kind of technology to help it tick along.

You can incorporate tech at every stage in your business to help improve productivity, including CRM’s to help manage your customer relationships, accounting software to manage sales, invoices and expenses, email, and social media automation to communicate effectively with your customers/partners and so much more. We touched on the different ways technology can help your SME operate efficiently previously, and a Nucleus Recovery Loan can help you purchase exactly what you need to achieve this.

Not only will the additional funds enable you to invest in tech and software, but you can also use the funds to buy more sophisticated machinery, cutting edge IT infrastructure and of course, cybersecurity solutions to help you avoid those hefty ICO fines for breaching GDPR.

 

Many have asked will SME’s face a funding gap post-CBILS, and for us at Nucleus, we think that businesses shouldn’t need to as there are other great options available now that CBILS has ended. RLS loans are a great option for organisations wanting extra funds to keep things running smoothly – or even smoother than before. Our exclusive RLS loan comes with interest-only payments for the first 12 months, so apply today to support your business in beating the Covid blues. 


BY Jessica Lambert

6MIN

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