Nucleus Commercial Finance gains £25m funding line from Paragon Bank
Alternative finance firm Nucleus Commercial Finance has locked in a £25 million funding line from UK-based Paragon Bank.
Founded in 2011, Nucleus claims to have already lent more than £1 billion to businesses in the UK. It plans to use the new funding line to boost the support it provides to small and medium-sized enterprises (SMEs).
“Working with Paragon Bank, a specialist in property lending, highlights our strength in this space and is a testament to the strong sourcing, underwriting and execution capability we have at Nucleus,” says Chirag Shah, chief executive of Nucleus Commercial Finance.
He adds: “This funding will accelerate the support we’re able to offer to SMEs who are struggling to secure funding from traditional banks.”
According to a study from fellow alternative lender ThinCats, only 55% of SMEs approach a bank first for as their first source of new financing, while 30% never seek external funding.
Younger businesses were also more likely (22%) to pick an alternative finance platform as their first-choice lender compared to just 4% of the oldest SMEs.
Paragon Banking Group is one of the UK’s largest providers of mortgages and personal loans. Founded in 1985 as the National Home Loans Corporation, it changed to its current name as part of a refocusing towards banking.
Adam Daniels, managing director of structured lending at Paragon Bank, says that for it to commit £25 million is a “testament to the strong client relationships built” and the hard work carried out by Paragon’s structured lending team.
“We are delighted to be able to provide funding for Nucleus,” he adds. “The opportunities that Nucleus provide for UK business owners reflects our passion for driving the growth of UK SMES and supporting high-quality lending business.”