Nucleus Review

What is Nucleus? 

Nucleus is an alternative finance provider that was founded in 2011. The business offers structured funding for short, medium and long-term goals. Unlike a traditional bank, Nucleus has an established team of investors who provide the finance needed to support successful businesses. 

As of 2023, Nucleus proudly states it no longer requires new private investors and instead supports clients through its existing framework – a sign that the business is trusted in the industry and selective about how it finances your business if your application is approved. 

What types of loans does Nucleus offer?

Nucleus offers business funding split between three separate products – though each product has a degree of flexibility in terms of finance amounts and terms. These products are, as follows:

• Business loans: Nucleus’ core product is its unsecured business loan, which offers financing from £10,000 up to £2 million, depending on your needs, eligibility and business performance. Business loans can be used for all manner of activities, from plugging gaps in cash flow to hiring new employees, buying out a manager or buying new premises. 
• Property finance: If your business owns the property, Nucleus allows you to lend against it via a business loan secured against residential or commercial property. This loan has a far higher cap in maximum lending, going up to £5m. If your business doesn’t own property, you may also be able to access this product by taking a charge against your residential property. 
• Recovery loan scheme: the government’s recovery loan scheme has been extended, and Nucleus offers a core product focused on it, with a credit limit of up to £2m. 

Are you eligible for a loan from Nucleus?

Nucleus aims to offer finance to businesses that have been turned down by banks, which means eligibility tends to be simplified compared to a traditional loan. However, Nucleus, like all lenders, still has a specific set of eligibility criteria you’ll need to meet in order to be successful when applying for a loan. 

For the Nucleus business loan, you’ll need to have 12 months of trading history and have at least one UK-based director. The property finance loan is more flexible, open to all ages of business, provided you own property. 

The recovery loan has a selective group of criteria which are more extensive than Nucleus’ other products. Click here to check them. 
 

What information do you need to provide? 

Nucleus is a modern digital lender and asks that you share access to your bank via Open Banking, which enables their team to assess your business’s financial performance and stability quickly. 

In some cases, you’ll also have to provide recent bank statements and your latest set of accounts. If you’re operating a relatively new business, it’s also a good idea to provide a business plan and cash flow forecast to help decrease your perceived risk. 

What are the rates and terms? 

Like all lenders, the rates and terms on offer from Nucleus depend on your application and circumstances. The more you borrow, the higher your overall repayments – though stronger applications will generally receive offers at a lower interest rate. 

Business loans can range from 3 months to 7 years, though only secured loans have such extensive repayment periods. Interest rates will be offered dependent on your application and background – though 6% seems to be the average figure reported online. 

Secured loans are less risky for the lender, so you can access far better interest rates. Nucleus offers 1% for standard secured term loans and interest-only loans of up to five years. 

Want different rates? 

If you’re looking to lend to fund your business growth, accepting a loan with a high-interest rate can lead to costly debt that you might struggle to repay. Speak to Rangewell if you’d like to borrow at a lower interest rate and we’ll either renegotiate with Nucleus or find an alternative lender to suit your needs. 

What are the fees and charges?

When you receive a loan offer, an arrangement fee may be included with it. This can be around 4-5.5% of the loan amount, so make sure you review your offer before accepting it. 

Nucleus doesn’t charge for early repayments and, in fact, offers a discount if you do so, meaning businesses that want to be proactive about repayment may favour this lender. 

Do Nucleus offer secured or unsecured loans?

Nucleus offers both types of loan to its customers, with property loans based on security against your property assets and the standard business loan instead coming unsecured but requiring a personal guarantee. 

How do I apply?

Nucleus is part of a wave of modern lenders utilising digital applications to make the process far faster than traditional applications. To apply, visit their website and hit ‘apply now’, where you’ll have to fill in some digital forms with information about you and your business. 

You can also get pre-approval with a free eligibility checker from Nucleus, which doesn’t affect your credit score, so it’s worth using that option before committing to an application.

What if you are rejected by Nucleus? 

Some new businesses may not be eligible for a loan from Nucleus, especially those without property to risk. Of course, even an established business can be turned down for a loan from this provider – just as you can from any other. 

The brand does explain each decision, so they will make it clear why you were rejected if that is the case. If you’ve been rejected for a loan by Nucleus, contact Rangewell today. We can discuss your application, explore other options and secure the finance you need to make your business goals a reality. 

What to do if your Nucleus loan is coming to an end

If you’ve already taken out a loan with Nucleus and your term is approaching its end, don’t default back to the lender before you speak to our team. We can help you by discussing your existing loan, your future goals and then directing you to the most appropriate finance product and lender to suit your needs.

Need more funding? 

Whilst Nucleus offers a higher credit limit than many other alternative finance providers, it may still fall short for those with demanding capital needs. If the Nucleus funding limit of £2m for unsecured loans is too low and you need greater amounts of credit, Rangewell can help. We work across the entire lender’s market and can find the most relevant option for you, all at no cost. 

Get in touch today to discuss Nucleus’ loan options or to ask questions about business loans and finance.