Asset-based lendingthat can unlock your potential

By choosing our asset-based lending solution, you could leverage any of your business assets to raise funds. We'll let you borrow anything from £100K up to £50M against invoices, machinery and stock to boost your business growth. 

Why not see if business asset finance is right for you?

Get approved for free
£100K to £50M
Dedicated relationship manager
Fund invoices up to 100%

What is Asset-Based Lending or Finance?

If the time comes to raise extra funds, some companies prefer a more familiar option – like a bank loan. And a lender will often, if not always, look at your cash flow before deciding if it's a 'yes' or a 'no'. That's to make sure you can keep up with your repayments. Other companies, however, have an extra – or alternative – option. And this is called asset-based lending.

This asset-backed finance solution is what its name suggests. You get the support you need – with your assets acting as collateral. This can be a great solution if the assets on your balance sheet are valuable. And it means you can unlock the equity tied up in invoices, property and other owned assets without selling them. Then, reinvest the cash elsewhere – and drive your business forward.

It's a creative solution that more companies of all sectors and sizes are turning to. The British Business Bank found in early 2020 how the value of smaller business asset finance deals had increased to £19.4bn between 2014 and 2018 – a rise of 32%. You can also offer multiple assets as security, which can be a smart way to access higher levels of funding. How much could asset-based lending be worth to your business? Well, with Nucleus, you could borrow up to £50m for your growth plans. The terms and conditions are then tailored to your business and mix of assets.

So, asset lending can be a customisable combination of multiple finance products. Some asset finance providers may also prefer certain asset types over others. Or they may ask for your funds to be linked to an invoice facility. But Nucleus isn't like that. We're more flexible – and you can learn how by requesting a callback from one of our commercial finance experts.

What can Asset-Based Lending be used for?

Using commercial asset finance can be a helpful solution to a wide range of everyday business challenges. Like all our forms of commercial finance, the aim is to support you – and whatever it is that you want to achieve. Here are just some examples…

Acquisitions

Enhance your growth by acquiring additional assets to strengthen your business portfolio. 

Enhance cash flow

Got unpaid invoices? Use an asset finance solution from Nucleus and bolster your cash flow situation.

Growth

Asset finance and leasing can be the ideal solution when it comes to fuelling your business growth.

Strategy funding

Use our funds to strategise the next phase of your journey with confidence. 

Succession planning

What comes next? Plan for the future – and be assured your business is in safe hands. 

Unexpected bills

Deal with whatever life throws at your business without needing to change course.

How our Asset-Based Lending works

So, let's explore how asset finance solutions work. Getting the funding you need can be hard if you don't have strong cash flow or limited cash reserves. But you could use unpaid invoices or physical assets to unlock that support. Let's imagine, for example, you're a seasonal restaurant business without a year-round income. But you do have kitchen equipment to your name. That's when asset-based lending comes in.

We're an asset finance company with no pre-determined criteria. We'll work with you to learn more about your borrowing needs and asset profile. By doing this, we can match you with the most appropriate funding solution. The choice of funding types that we offer means this could include any combination of Invoice Finance, Property Finance, or Construction Finance.

The terms and conditions will vary depending on the makeup of your funding. Regardless, we make all costs clear upfront to support your business plan, and help you manage its finances. Your repayment terms are tailored to suit you – up to a maximum of seven years. In addition, we make all our business asset finance decisions locally. We do this using a fast and efficient, yet consultative, approach that is designed to work for you.

Above all, our experienced team have the expertise to handle applications of all complexities and funding amounts. Request a callback today to find out what this could mean for you.

Nucleus asset finance explained

1

Leveraging your
business assets

Let's meet to kick things off and get a better idea of your asset lending needs.

2

We
provide terms

Based on your requirements, we'll provide you with our indicative terms.

3

Time for
the survey

We'll drop in to complete an onsite survey and asset valuations.

4

It's
Offer Time

Your offer arrives with everything you need.

5

Get
your funds

Activate your growth plans and start seeing positive change immediately.

How to apply for asset-backed lending

Eligibility

  • All sectors
  • England or Wales
  • Established businesses and start ups

What assets do we fund?

  • Invoices
  • Stock
  • Plant & Machinery
  • Property
Request a callback

You know your needs better than anyone. So, as long as our asset-backed lending benefits your business, you're free to use it how you choose. Common examples include:    

Acquisitions

Ready access to funding can always be a problem when an acquisition opportunity presents itself. No matter if you want to enter a new market or grow together, asset lending could be one effective way to meet the time-sensitive cash demands of a major deal. 

Succession planning

Knowing the future of your business is secured can be a huge relief. But how do you achieve that? Leveraging value tied up in assets can be useful if you're thinking about a management buy-out or buy-in. And that can help set the future direction of your company.

Growth

Are you thinking bigger and dreaming of better? No matter the scope of your ambitions, using asset-backed finance can help you take advantage of growth opportunities. It means you'll be able to meet bigger contracts, invest, or recruit without impacting working capital.

Enhance cash flow

Our research shows the average invoice takes 74 days to be paid. This can pose a real problem for smaller businesses in particular. But asset finance solutions can help to meet those routine cash flow demands, or cover any short-term gaps that might emerge. 

Turnaround strategy funding

Partnering with an asset finance company like us could help your business tackle its problems and see a better future. The amount you borrow can be used to put in place new strategies or ideas to get your business back on track and drive it onto a more successful future.

UK Finance data shows that around 40,000 businesses used invoice and asset finance solutions in 2019. Here are some of the main reasons why it's proving such a popular option:  

Accessible 

Corporate asset finance enables you to unlock the value in assets that aren't usually considered by traditional lenders. It also places less focus on your credit history, past trading performance, or cash flow projections when compared to other forms of business finance.  

Higher levels of funding

The ability to use a mix of business assets as collateral – rather than one or none at all – could grant you access to larger amounts. And providing an asset isn't pledged in another agreement, you're free to use business asset finance alongside other funding types too.    

Flexible

Planning a large expansion project? Covering a short-term gap in cash flow? However you want to use your funding, you can. There are no restrictions on your sector, size, or time in business either – making asset-backed finance ideal for a range of business profiles and aims. 

Better rates than unsecured finance

Asset-based business loans are not as risky for lenders compared to unsecured finance. As you offer assets as security, it'll be easier for them to recoup any losses if you go out of business or fail to make a repayment. This benefit is passed on to you through lower interest rates.

In recent years, research shows that more businesses are becoming increasingly aware of alternative finance solutions. Having already provided well over £2bn to SMEs across the UK, we're one of the asset finance lenders leading the way. Here are just some reasons to get in touch:    

Range of funding

We offer asset-based lending amounts worth between £100k and £50m – suitable for a range of business sizes and objectives. So, this might be a short-term cash flow gap, or it could be to fund a major long-term investment plan. It's your call.

Flexible asset finance solutions

Let's make commercial finance work for you. Use a mix of business assets as collateral with or without an invoice finance facility when you choose us. You can even use asset-based lending  in conjunction with other finance types to achieve your goals.

Fast service

Been approved? Great! We'll transfer your funding on the same day. Even better! 

Friendly approach

Our in-house experts will guide you through the whole asset-backed lending process. You get a dedicated account manager every step of the way.

Trusted by our customers

Our asset-based lending could keep your business moving forward. It's already done just that for many of our clients. And we're delighted to be rated 'Excellent' based on Trustpilot reviews from those we've already helped. 

Fully authorised and regulated

We take our responsibilities to our clients very seriously. We are fully authorised and regulated by the Financial Conduct Authority (FCA) to provide your business with advice – and funding.

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FAQs

Getting external finance for your business is never without its risks. So, it's essential that you know exactly what you want to achieve – and how each option could help you.

The first step is to consider your eligibility. Do you have any assets or unpaid invoices you can use as collateral? If so, an asset finance solution could work for you.

It can be a particularly effective solution if your business is in one of the following situations:

−       Seasonal: While you may have year-round funding needs, you don't have year-round income. By borrowing against your assets out-of-season, you can ensure you're in the best position for when the time comes to do business.

−       Fast growth: Sometimes, an opportunity will come along that exceeds your current cash reserves and credit facilities. So, an innovative way forward is needed. And that's where asset-backed lending can help.

−       Acquisitions or buy-outs: About to write the next chapter in your business story? Asset finance can support situations where you're looking to fund an acquisition, undertake a management buy-out, or simply restructure your existing arrangements. 

Just as there are potential benefits, you also need to be aware of the risks that can come with asset-backed finance. Some can have huge long-term implications for your company.

−       Credit report: Like any other asset finance company, Nucleus will run a credit check [PH1] as part of our decision-making process. This will show up on your company credit score – and potentially affect your ability to secure funding in future.

−       Charges: You can incur charges if you fail to make a repayment on time. This can also apply if you decide you want to pay off your asset-backed finance ahead of schedule.

−       Lower than valuation: Your assets may have a certain value, but it doesn't mean you can borrow that same amount. You may only be offered a percentage, which is because there are costs to convert those assets to cash – as well as any potential loss of value.

−       Not all assets are considered: We look to consider all assets when you need funding. But there are some assets that some lenders won't accept as collateral – depending on the situation. We can advise what you can and can't put forward when you contact us.

−       Lose assets: The biggest risk, of course, is losing your assets if you fail to repay what you owe. A lender could take control of business-critical equipment and property.

You can apply to borrow between £100k and £50m through Nucleus. If you meet our corporate asset finance criteria, we'll make an offer based on a cumulative assessment of your asset mix and requirements.

The price of our asset-based lending is tailored to your business and risk profile. Many of our typical facilities come with a fixed cost that starts at 4%. This means it's easier to budget for over the course of your repayment term. 

We'll discuss your needs and asset mix once you get in touch. This gives us a chance to learn how we can best help you. Our aim is to create an asset finance solution that's unique to your needs and ambitions. And we'll consider any assets you believe can be offered as security.

That said, it's worth bearing in mind that lenders can't accept any and all assets.

It could be that complex arrangements make the assets difficult to collect. Or you might own a piece of highly specialised equipment that wouldn't be of any value to another company. There is also the question of time-sensitive assets (expiry dates or limited shelf-lives). 

From tech start-ups to established construction firms, one of the advantages of asset-backed lending is that it's suitable for any business with owned assets. You can read examples of the companies that we've worked with in our client stories

The mix of assets and finance products that make up your asset-based lending agreement can affect how long it takes to receive your funding. Having documents readily available can help to speed the process up. Once we get everything, we then need to approve your application. If it's a "yes", you'll have access to your funding within a day. 

The main difference is the way in which a lender decides if your company can borrow money – and how much. In the case of asset-based lending, it's all judged on the value of your assets.

It's also worth noting that it's not just about what you own, but its quality too.

On the flip side, your chances of securing Cash Flow Finance will rest on your current cash flow and debt levels. This is more likely to be an unsecured type of finance and a lender would like to know that you can pay back what you borrow before approving any application.

Asset-based lending in the UK is subject to strict controls and guidelines. As such, Nucleus is fully authorised and regulated by the Financial Conduct Authority (FCA) to provide advice and funding to companies. No matter which lender you choose, you should always make sure they have FCA authorisation. This is for your own protection.

Asset-based lending is just one of the funding options available to your business. It's also just one of the products that we offer here at Nucleus.

We provide sector-specific solutions – like our Construction Finance. Or you can choose a Business Cash Advance, which is secured by your future card takings. We also have a full suite of commercial finance products that can provide the right funding solution for you.

See what else we have to offer by exploring our website. Alternatively, request a callback and one of our experts will help you identify the best way forward for you and your business.

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