Chirag Shah

Nucleus to hire trio to bolster asset-based lending capabilities




Nucleus Commercial Finance plans on making a number of significant hires to boost its asset-based lending capabilities as well as having several product developments in the pipeline.

The peer-to-peer lender announced last week that it had reached the £500m lending milestone and aims to double its lending every year for the next five years.

Speaking to Bridging & Commercial, Chirag Shah, CEO of Nucleus Commercial Finance, said it was continuously looking to increase its lending capabilities to support clients and provide solutions that would enable them to grow and prosper.

“There are several product developments in the pipeline as we continue to expand and tailor our offering to respond quickly to changing customer needs.

“With our finger on the pulse we’re focused on providing bespoke products for different audiences.

“We’re making three significant hires to bolster our asset-based lending capabilities (providing loans of £20m plus), and more details on our product developments will follow in the coming months.”

Hinkley Point
Nucleus recently provided funding for the Hinkley Point C works

Nucleus grew its team to 42 last year and Chirag added that it would continue to invest in its team and expand its offering.

“We’ve introduced new products in response to evolving demand, including cash flow finance and property finance, and strong uptake has contributed significantly to our lending growth.

“We believe it’s the strength of our multi-product offering, flexible approach and the expertise of our team that’s attracting new customers.

“Continued investment and innovation will support our ambition to double our lending every year for the next five years.”

Looking at what could hamper Nucleus’s progress over the next 12 months, Chirag felt the triggering of Article 50 had created market uncertainty for at least the next two years.

“Over the next 12 months there’s likely to be investment caution among SMEs, and they will need, more than ever, expertise and advice on how to adapt to changes in the business and lending landscape.”

Looking at other potential hurdles to growth, Chirag added: “There are also upcoming regulatory changes such as the fourth anti-money laundering directive and General Data Protection Regulation (GDPR), which impact our business and our clients.

“We’re working to ensure that the correct infrastructure is in place well ahead of the associated deadlines.”

Chirag added that there was a high level of competition in the alternative lending space and expected this to continue to grow, especially as increased government support for SMEs opened up more opportunities for lenders.

“To grow market share, it’s vital to stand out from the crowd and offer a robust product set which challenges others in the market and competes effectively with bank offerings.

However, Chirag felt that there was a lack of awareness of the alternative finance market and was worried this was limiting the progress of the industry.

Financial advice
Chirag believes more needs to be done to raise awareness of alternative finance

“The product range and support available to businesses – particularly SMEs – has never been better.

“While there’s been some movement in making business owners more alert to their finance options, there is still a lot of work to be done.

“Currently businesses aren’t seeking out options available to them as actively as they could, despite the market being saturated with a number of different products.”

Chirag felt lenders and intermediaries could all take steps to remedy this issue.

“We’re constantly working to ensure our broad product offering is competitive when compared to banks, and helping businesses compare and assess their options.

“Our investment in our people – including sector specialists – is a big part of how we can increase understanding in the market, focusing on well-managed relationships and keeping intermediaries and lenders informed on the types of financing available.”

Chirag also felt the bank referral scheme was a step in the right direction in terms of making SMEs more aware of non-bank lenders, but still had concerns.

“…Its effectiveness is restricted by the time delay in getting a negative answer from the bank before a business even enters the scheme – this can be as long as six months and businesses just can’t wait that long.

“Alternative lenders are a vital piece of a broker’s toolkit to make sure clients can access the right type of funding at the right time.

“Alternative options should be considered and discussed with clients at an earlier stage in the cycle, for example, while waiting too long for a decision from a bank.”

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