Nucleus Commercial Finance and M&G Investments (M&G) have announced a new £40 million funding line that will support more SMEs through asset-based lending (ABL) solutions.
This finance will increase Nucleus’ capacity to support businesses by 40%, through competitively priced ABL solutions – providing a significant injection of finance for businesses across the UK.
To date, Nucleus Commercial Finance has funded invoices from over 5,000 UK businesses, providing total ABL funding of over £900 million.
ABL enables businesses to raise finance through leveraging their assets including: unpaid invoices, WIP, property, plant & machinery and inventory.
Nucleus Commercial Finance CEO, Chirag Shah, comments: “This funding means that we will be able to work with more businesses across all sectors and sizes and particularly larger businesses which we believe are currently underserved, due to the often complex nature of the finance that they require.
“This new facility also increases our flexibility by allowing us to offer more competitively priced funding to UK SMEs.”
Kevin Haupert, Director, Asset Based Lending at M&G Investments adds: “ABL has been growing in popularity amongst both borrowers and advisers in recent years as business loans from traditional sources have become more difficult to obtain following the financial crisis.
“Unlocking the value of assets that can be used as collateral by lenders provides a highly flexible form of financing and enables companies to improve their liquidity. Nucleus Commercial Finance has over a decade of experience in ABL and have an excellent track record as well as a deep understanding of businesses and their financing needs.”