Contractual debt presents a serious challenge to cash-strapped businesses but not an insurmountable one - at least not if you’re working with Nucleus Commercial Finance.
Nucleus is not a 'traditional’ invoice finance company. Nucleus looks at the issue, and then finds an appropriate funding solution, as it did recently for a Midlands-based commercial fit out company that was struggling for cash.
The company had been born out of a company that had failed two years earlier, but was steadily rebuilding its business. The difficulty was that large amounts of its cash were being tied up in contracts typical to the construction industry, where framework agreements and staged payments are the norm. The challenge became so great that its existing facility was suspended, and with no other funding available, the owner was obliged to inject a considerable sum of his own money.
Then he found Nucleus Commercial Finance who arranged a 100% finance facility for a transparent, fixed fee, giving the business access to more than £290,000. What impressed the owner the most was the speed with which the decision was made: "It was a thorough and efficient due diligence process that resulted in an early offer of help,” he says.
"Nucleus demonstrated a detailed understanding of our industry, and how to fund contractual debt. It has a unique process for analysing and managing contractual debt based businesses like ours."
Chirag Shah, Chief Executive of Nucleus Commercial Finance says that Nucleus designs funding solutions that are practical and sustainable: "We develop solutions that provide pre-payments against applications, stage payments and milestones for sub-contractors in construction or other industries where contracts with their customers have been a barrier to finance from traditional lenders,” he says.