Nucleus Commercial Finance gets accredited to offer RLS term loans
By Joy Dumasia
Nucleus Commercial Finance, the FinTech revolutionising how UK SMEs access finance, has been accredited by the British Business Bank under the government-backed Recovery Loan Scheme (RLS). Nucleus will be the first lender to offer interest-only on all RLS term loans.
Businesses will make interest payments over the first year of their six-year Nucleus RLS loan, rather than repaying both interest and principal. This will help companies with significantly lower repayments over the first 12 months, a major development as SMEs fully reopen and recover from the impact of the Covid-19 pandemic.
The Government-backed RLS supports access to finance for UK businesses as they recover and grow following the pandemic. Funds can be used for any legitimate business purpose, including managing cash flow, growth and investment. It is designed to appeal to businesses that can afford to take out additional finance for these purposes.
Nucleus Commercial Finance will provide loans from £30,000 to £10 million (£30 million per group) for SMEs seeking financial support due to the COVID-19 pandemic. RLS term loans will be available across both secured and unsecured finance options.
The accreditation follows Nucleus playing a significant role in the Coronavirus Business Interruption Loan Scheme (CBILS). The fintech lender processed over 12,000 applications, lending £438m in 2020 to support SMEs.
Chirag Shah, CEO, Nucleus Commercial Finance, said: “We’re delighted to have been accredited under the Recovery Loan Scheme and pleased to be the first lender to offer interest-only on all RLS loans. This is a significant development for SMEs and the broker community as businesses will be repaying less over the first year of their six-year loan. This means they can use the financial support on their priorities and to future proof their business.”
Recently, IBS Intelligence reported that Nucleus Commercial Finance, the FinTech, announced that Sam Percival has joined as Business Development Manager for London and the South East. The appointment comes at a crucial time as SMEs show increased demand for finance following Covid-19 lockdown restrictions.