Nucleus Finance launches new business loan to appeal to younger SMEs

SME alternative lender Nucleus Commercial Finance has launched a new SME loan, which it hopes will appeal to younger businesses and startups.

The Nucleus Business Loan proposition replaces the SME lender’s Cash Flow Finance product.

One key difference between the two products is that the new loan product allows borrowers to be able to take out loans with a shorter period of trading history.

The Nucleus Business Loan offers businesses loans of between £10,000 up to £2m for a period of up to six years, with interest of six per cent.

Nucleus Commercial Finance, which claims to be able to decision lending applications within a minute, believes that startups and younger SME will be attracted to the loan product, given the loosening of accreditation check.

Chirag Shah, founder and CEO of Nucleus Commercial Finance, said: “UK SMEs are itching to grow, but too often opportunities fly past because of seemingly needless barriers placed in their way.

“It is often, rightly, said that SMEs are the engine of UK growth and yet traditional finance providers seem infuriatingly reluctant to deliver the dynamic and flexible lending products that are needed for them to achieve their potential.

“The UK economy is on the up and there are real tangible opportunities for businesses to seize. Ensuring that they have fast access to the necessary finance, empowering them to seize these growth opportunities, is paramount.”

In September last year, the SME alternative lender said its cumulative SME lending had reached £2bn.