Sometimes your business’s financial requirements exceed your borrowing capacity. If the bank won’t extend your line of credit, flexible secured business loans from Nucleus can help.
Unfortunately, banks don’t always operate in logical, straightforward fashion – even if you have impeccable credentials and a spotless credit history. Being denied the full loan amount you need is especially galling when your requirements are only short term, and you expect to have the necessary capital available quickly. Banks can be quite near-sighted: in their efforts to mitigate risk, they dismiss viable applications on extremely thin grounds. This lack of funding can potentially jeopardise an investment vital to the future of your business. However, using property as collateral enables SMEs to borrow what they need, when they need it, at competitive rates.
At Nucleus Commercial Finance we specialise in these kinds of secured business loans.
To use an example, if you’ve managed to secure £500,000 of primary lender funding for a £1m loan, you may need an additional £100,000-£200,000 to fill the gap between senior debt and equity. This is where we can help. When we agree financing, you will pay an arrangement fee and a monthly fee - both dependent on circumstances such as the value of the property you’re borrowing against, perceived risk, and credit history.
At Nucleus Commercial Finance we offer three types of secured business loan.
These are typically for commercial or residential property purchases. For example, in the event you can’t find the necessary funding for a new business premises, a bridging loan is often a viable short-term option. This type of funding is useful when you have a clearly defined plan for financing - for example, if you’re waiting on a mortgage application but need to make a property purchase right now.
The standard package can be up to £5m in value and usually lasts from a few days to six months in duration. As this kind of finance is designed to ‘bridge’ a gap – and has higher interest rates – it’s unsuitable as a source of primary funding.
Second charge loans are secured business loans that use a portion of the equity in your home or business property as security, and are suited to you if you need a loan that you pay back over five to seven years. To qualify for second charge finance, you’ll need a satisfactory credit history.
If you have equity remaining and are in need of additional finance, you may benefit from a third charge loan. We offer excellent third charge loan rates. The lender that supplies you with third charge financing will be paid third - behind the primary and second charge lenders. Again, this will be subject to credit history and remaining equity.
We operate differently to a traditional financial institution and are flexible like a P2P. This means we are willing and able to service secured business loans that banks and other P2P providers won’t be able to handle.
The prospect of a £500,000+ bridging loan alone is enough to make a typical alternative finance lender balk. Fail to meet one or two of their stipulations, and they’ll often reject an otherwise perfect applicant.
We’re less interested in criteria than standards. Our goal is to fund businesses that will succeed, not ones that tick every box on an arbitrary list; whether we’re dealing with a £150,000 mezzanine loan or a £5 million investment in new warehousing facilities, we try not to say “no” if we can say “how” instead.
We believe companies should feel enabled by the lender, not stifled. When your application is approved, we can provide funds promptly. From there, we make every effort not to micromanage the loan.
Support will be available upon request, but all things being equal, we won’t be in regular contact. When we fund a mezzanine client, it’s not simply a transaction, but an investment and a statement of trust.
A second or third charge loan, typically serves as one constituent element of a larger business funding package. When they use us to structure secured business loans our clients also often combine invoice finance, cash flow finance, asset funding and business overdraft facilities, dependent on the requirements of their businesses.
We provide all of this in one place. Nucleus bridges the divide between traditional banks and the new style of P2P lender. Unlike the former, we’re able to be flexible and adapt to our clients’ needs; unlike the latter, we have the experienced, in-house finance specialists needed to assess applications and structure loans.
We are transparent about our fees and charges, and we won’t take on a client we don’t believe in. When we agree to work with someone, it’s a vote of confidence; we’ll treat you as a business partner, and afford you all the respect a business partner deserves.
Contact one of our experts today to discuss your secured business loan options.