In the Spotlight with Mark Swindell, Nucleus

We spoke to Mark Swindell, business development manager at Nucleus Commercial Finance, about why it's a 'mixed bag' for brokers in the current climate and how they can best support SMEs post-CBILS.

Related topics:  In The Spotlight,  Commercial,  Commercial finance
Rozi Jones
4th August 2021
Mark Swindell Nucleus
"Brokers have a crucial role to play in signposting SME clients to the options available to them by assessing their needs on a case-by-case basis."

CR: Can you tell us a bit about your role at Nucleus Commercial Finance?

As a business development manager at Nucleus, my main role is to support our introducer networks by providing them with the knowledge, products and services to meet their clients’ needs. Prior to Covid-19, my main focus was very much on the unsecured and secured lending market, dealing with unsecured business loans, merchant cash advance and property finance. However, when the pandemic hit and the Coronavirus Business Interruption Loan Scheme (CBILS) was introduced, my role naturally pivoted to focus primarily on this, being the first point of contact for brokers, as a growing number of SMEs were looking for government backed financial support to survive.

CR: What sentiment are you hearing from brokers at the moment?

It’s currently a mixed bag. While we’re hearing from brokers that lots of businesses feel like we’re through the worst of the storm thanks to the vaccine roll out, there are still many businesses which haven’t been able to return to business as usual.

One area we’re seeing particular confidence in the market is around management level buyouts as some business owners bring forward exit plans. Now that we’re out of lockdown, we expect to see increased confidence in the hospitality and retail sectors, as more consumers flock to the high streets and businesses seek finance to help them recover and take advantage of the current low interest environment.

CR: What challenges and opportunities are you currently seeing in the SME lending space?

Many businesses have been in survival mode for the last 18 months and this has understandably affected business owners differently with many becoming more risk averse. As we start the journey back to more traditional lending, it’s going to become increasingly important for SME owners to evidence how their business can grow and react on the fly to differing circumstances. Businesses that pivoted during lockdown have shown this is possible with investment and a little ingenuity. No one could have foreseen the pandemic, but the way I’ve seen many business owners adapt has shown how strong SMEs are and that is incredibly encouraging. Now is not the time to take the foot off the gas.

CR: How can brokers best support SMEs post-CBILS?

Post-CBILS we’re likely to see fewer funding options available to SMEs, especially at the low rates businesses have become accustomed to over the last 18 months. As a result, the role of brokers will be more important than ever in educating SMEs about the finance available to them. Brokers must ensure that their customers understand that the government support measures were a once in a lifetime opportunity, and that these rates won’t be around forever.

Brokers have a crucial role to play in signposting SME clients to the options available to them by assessing their needs on a case-by-case basis. Particularly as government funding comes to an end, many SMEs won’t know which finance options best suit their needs. This is where brokers must do their bit in highlighting the different lending options available and providing businesses with flexible finance that fits.

CR: How important has technology been during the pandemic in providing brokers and ultimately SMEs with access to finance?

Providing quick and accurate decisions during the pandemic has been vital, as many SMEs have needed instant access to simply survive. Technology has played a huge part in this, particularly with regards to administering CBILS loans. After becoming an accredited CBILS lender, at Nucleus Commercial Finance we were able to process over 12,000 applications, thanks to our Open Banking and AI capabilities. This enabled us to deliver increased volume with ease, something high-street banks and many alternative lenders simply cannot do due to falling behind where tech is concerned.

CR: If you could see one headline about the alternative finance industry this year, what would it be?

'Working together, alternative finance and UK SMEs show how to bounce back stronger than ever!'

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