FAQs

If you are unable to find a suitable lender elsewhere to refinance your short-term funding, then, subject to credit, we will refinance the loan for you. With that said, it is worth noting the potential ramifications of this situation, and look at the strategic approaches a struggling business can employ to address them otherwise.

• Continued Business Operations:

A primary concern for any enterprise that is unable to refinance a bullet payment is the possible disruption of its operations. If assistance is not sought it can cause the entire operation to grind to a stall with catastrophic effects. Should your business find itself in this situation, a refinancing option with Nucleus can resolve any problems.

• Flexible Terms:

Once refinanced, it may be possible to secure more flexible new loan terms with Nucleus. You will be aware of your business’s current problems, but also its unique potential and what your intentions are in the market. By discussing these points with us we can help devise a more manageable solution aligned with your goals.

• Avoiding Default:

Defaulting on a loan can have many severe implications for your business, including damage to your credit profile, and with it, potential legal consequences. By refinancing with Nucleus you can avoid these negative outcomes, maintaining a positive financial standing.

• Financial Counselling:

Along with refinancing options, Nucleus can provide guidance and advice on managing your finances better in the future. This can be invaluable for businesses looking to avoid similar situations down the line, as well as having an ongoing communication with reliable financial experts to aid in guiding future plans.

Communicating your refinancing challenges with us, or any lender, as early as possible is important for transparency and avoiding unfixable problems. If you are trying to hide or ignore your finance troubles in hopes they resolve themselves, it could become extremely difficult to resolve the issue as a whole. Early communication allows for more time to explore solutions and ensures that both parties, you and your lender, can work collaboratively towards a resolution. Nucleus is here to assist in any way we can.

For standard secured term loans through our property finance facility, interest rates start at 0.91% per month. This is a favourable rate, especially when considering the flexibility and benefits associated with property finance, however rates will vary on a case by case basis, and it’s worth spending some time getting to grips with understanding how our loan rates work.

Tailored Solutions:

At Nucleus we strive to offer competitive rates, helping to ensure that businesses can access the funds they need without being burdened by high-interest costs. That being said, the rate you are offered will vary based on several factors, including the loan amount, term, value of your property, and your business’s financial health. Our offers will be tailored unique to you.

Transparency for Favourable Rates:

Transparency runs both ways for us at Nucleus, this means when discussing rates and terms, you can expect us to be clear about our intentions, based on you also being transparent with us. There are no hidden fees or charges with us, and once we have the necessary business information from you, you can expect to secure a loan with an extremely competitive rate, based on your circumstances.

Refinancing Opportunities:

If you’ve previously secured property finance at a higher rate, the current competitive rates might present an opportunity for refinancing. This could lead to savings for you over the loan term. With that said, It is still always advisable to consult with Nucleus’s financial advisors to understand the best rates available for your specific situation, and they will be more than happy to provide insights into how the rates are determined and offer guidance on securing the best terms.

While the starting rate for our property finance facility can start at 0.91% per month, the final rate offered will be tailored to your business’s specific needs and circumstances. It’s essential to engage in a detailed discussion with the financial team to ensure you secure the most favourable terms.

The process usually takes around two to three weeks once a valuation is complete and an offer is given. The process is also made more efficient if you have a good solicitor, and make the required documents readily available from the start.

At Nucleus we pride ourselves on efficient internal processes and maintaining a familiar team presence. With our dedicated experts and advanced fintech tools, most of the internal checks and verifications are completed rapidly. Below are some tips regarding factors that will influence the payout timeline, as well as some tips for a faster payout from us.

Valuation Process:

The time taken to complete the valuation process will be dependent upon your property’s location and its size, as well as the type of property it is. Ofcourse, a basic household property that is quicker to value will lend towards the overall time frame being much shorter, compared to more complex properties, for example a commercial factory, that may require a number of specialists for an in-depth assessment.

Document Verification:

Having up to date, well ordered documentation readily available will heavily influence your payout timeline. Prompt submission of accurate and complete documents will go a long way towards speeding up the verification process.

Solicitor Efficiency:

Associating with a competent and proactive solicitor who you trust will always make a difference in any financial deal. An expert in domestic and commercial property finance, who is familiar with the necessary paperwork and legal aspects will not only help avoid any unnecessary delays, but will help create transparency and trust between our parties.

Communication and External Factors:

Clear, timely dialogue between all key stakeholders – including yourself, Nucleus, the valuer, and the legal representative – is pivotal. This ensures a hasty resolution of any questions or challenges, mitigating potential hold-ups.

It’s also worth noting that occasionally, broader external dynamics – be it shifts in the market landscape, regulatory adjustments, or unexpected events – might sway the payout schedule. While these instances are infrequent, having an awareness of their potential influence on the proceedings remains crucial.

Tips for quicker payouts:

Initiate the valuation process the moment you decide to go ahead with the loan. The sooner this is completed, the faster the next steps can be set in motion. Before starting the application, speak to your solicitor and gather all necessary documents. This approach will save time during the verification phase. You should also regularly check with your solicitor and the Nucleus team to ensure everything is on track, and address any potential issues immediately.

Being proactive and ensuring efficient communication can sometimes shorten this duration. At Nucleus, we are committed to providing a smooth experience in efforts to ensure businesses across all sectors access the funds they need without delay.

Your repayment date will be sent to you at the start of your agreement and will vary depending on the type of Property Finance you use. If at any time you are unsure of anything, including your repayment date or your outstanding balance, call our team who will be happy to help and update you.

Property loans start at £25,000, and the overall cost of the facility will be dependent on your tailored solution, but you will know the full amount you need to repay up front, and there are no hidden fees or surprises.

Determining the Borrowing Capacity of a Business:

The borrowing potential of a business is influenced by several factors. Primarily, businesses with a good credit history may be eligible for a more substantial loan. The revenue generated by the business plays a pivotal role when considerations are taken, and enterprises with higher revenue streams can often secure more significant loan amounts due to their proven track history of success.

Certain businesses often also leverage valuable assets, such as property or machinery, as a form of assurance to secure a more substantial facility. This assurance is commonly referred to as collateral, with the intrinsic value of the collateral directly impacting the size of the loan.

The longevity of a business in its sector can also influence its borrowing capacity. Established businesses with a consistent track record may be favoured with larger loan amounts. However, businesses burdened with substantial existing debts may find their borrowing potential is limited. What’s more, the purpose of the loan, whether it is for asset acquisition or expansion, can also influence the loan amount.

Factors Influencing Loan Costs:

The cost associated with a loan can vary quite considerably. A significant component of this cost is the interest rate, which can fluctuate based on the loan tenure, the amount you seek to borrow, and the creditworthiness of the business.

Loans with extended repayment durations might offer lower monthly instalments, however, the cumulative interest over time could elevate this overall cost. Regardless, at Nucleus we ensure transparency with no concealed charges, and any doubts can be discussed when you contact us.

Property Finance term loans are for up to seven years dependent on your requirements. With a bridging loan, up to one year and interest only, up to five years, although two is most typical.

Typically yes, to use Property Finance you must own a home or commercial property with enough equity to secure your loan, although we will consider third party guarantors with security. Property Finance is a secured business loan and involves either a 1st or 2nd charge over a property as security.

A few Insights into Nucleus Property Finance:

Property Finance Defined:

Property finance through Nucleus is a secured business loan available to companies operating in England and Wales. It’s a mechanism whereby the borrower secures their residential or commercial property against the loan value they seek.

The Role of Equity:

The value of your property will play a pivotal role in securing your loan. As an example, a commercial property valued at £100,000 could potentially access you up to £60,000 in finances on a 1st charge.

Guarantors:

A third party guarantor is necessary to secure a property finance package with us, adding an additional layer of transparency and security between both parties. Specifics regarding third party guarantors can also be broached during the loan application process.

Understanding Charges:

In the context of property finance, it is crucial to discern the importance of the order of financial claims on the property. ‘1st charge’ and ‘2nd charge’ establishes this order, and also establishes which lenders will be repaid first should the borrower be unable to meet their financial commitments.

With Property Finance, we consider businesses of all maturities, from startups to established enterprises. For those looking to just start their business, it is worth looking at why startups might need property finance, as well as suggest some reasons why established firms could also make use of a property finance facility:

Working Capital:

Emerging startups will often find themselves in need of a large amount of capital during their foundation. It’s one of the largest reasons new brand’s choose to secure property finance, so they can cover preliminary inventory needs, as well as equipment, recruitment, or any promotional activities they require for a successful launch.

Asset Utilisation:

While startups might not have an extensive financial history, one or more of their directors could already have valuable property assets they can tap into. Using these will provide them with any necessary capital.

Growth Funding:

As businesses identify growth avenues, be it diversifying their offerings or venturing into new sectors, property finance can provide the necessary funds to ensure expansion without straining operating funds.

Why Established Companies Might Need Property Finance:

• Expansion:

Seasoned businesses, eyeing expansion – whether it is through obtaining new premises or increasing their production capabilities – can tap into property finance to fuel these endeavours.

Debt Consolidation:

Enterprises grappling with multiple financial obligations or burdensome interest rates, might find peace of mind in using property finance to consolidate their debts into a singular, more manageable financial commitment.

Working Capital:

In times of economic turbulence, or even predictable revenue dips, property finance stands ready to offer the essential capital, ensuring seamless operations and meeting overheads.

Whether starting a new business or managing an ongoing one, Nucleus’s property finance is designed to match your financial needs. Our financial team understands the unique challenges businesses face at different stages, and we are always aiming to provide advice, support, and practical financial solutions to help your enterprise grow.

We have helped hundreds of businesses like yours. Take a look at our property finance case studies here, to learn more about other Nucleus customers.

A Recent Success with BusinessOptix:

One of our most recent collaborations features BusinessOptix, a trailblazer in the Technology – SaaS Business Tool sector. BusinessOptix, with its innovative cloud-based platform, helps empower organisations to streamline their core operations, scale their ventures, and implement transformational changes. However, their unique business model, which involves licensing their software annually, led to irregular cash flows, with a significant chunk of their renewals occurring between March and June. This posed challenges when they sought funding from traditional high street banks, who were unable to see beyond the irregularities and appreciate the company’s robust vision and structure.

Ali Peerbhoy, the CFO of BusinessOptix, expressed their need for a lender that truly understood their business dynamics. After exploring various options and experiencing the rigidity of traditional banking services, BusinessOptix turned to Nucleus. Recognising the potential and strength of BusinessOptix, we took the time to delve deep into their operations, resulting in a rapid approval of £50,000 in funding.

This financial boost not only fortified BusinessOptix post an MBO, but also set them on a trajectory towards their ambitious goal: Doubling their turnover in just two years. The decision to partner with Nucleus was further solidified by our prompt response and unparalleled service level, aligning perfectly with BusinessOptix’s aspirations to expand their team and achieve their growth targets.

If you’re considering financial solutions for your business, our Nucleus team is here to help. We understand the unique needs of businesses at every stage, and take the time to tailor a service unique to each case. Whether you’re exploring property finance or other financing options, we’re ready to guide you. For more information or to discuss your requirements, reach out to us at 020 7839 1980. Alternatively, you can request a callback at a time that suits you.

Property Finance is a secured business loan and involves either a 1st or 2nd charge over a property as security.

This will vary dependent on your tailored solution but you will know the full amount you need to repay up front, there are no hidden fees or surprises.