The funding line will help the lender position itself to further support for SMEs once the Government’s Coronavirus Business Interruption Loan Scheme (CBILS) comes to an end in March.
SME lender Nucleus Commercial Finance has secured a new £200m funding line from two investment management firms.
Over the past year, Nucleus has been an active lender of CBILS cash, as well as moving towards automated underwriting. It is looking to use the new cash to continue to lend after the scheme comes to an end.
Nucleus Commercial Finance CEO, Chirag Shah, said: “Once the government loan schemes come to an end later this year there will be a significant funding gap in the UK. This is where Nucleus, as a fintech lender, will continue to play a vital role to bridge this gap and support businesses by providing the finance they need.”
“SMEs are now turning to alternative and fintech lenders as the first point of call due to our innovative solutions and ability to provide funds faster than high street banks. The new funding line will further accelerate this trend and cement our position as the leading fintech for SME finance,” he added.
Nucleus says it has lent over £1.7bn since its launch in 2011 with large growth in lending in the past year. Nucleus says it plans to lend £200m through the scheme before 30 March 2021 when it ends.