Nucleus Commercial Finance and Paragon Bank have announced a £25 million funding line to support SMEs through secured loans and property finance.

The new funding line is in addition to the existing £50 million in funding that Nucleus has specifically for its property finance product.

The new funding will enable Nucleus to extend the financial support it offers growing and start-up businesses with secured lending.

Nucleus now has over £175 million of funding lines available to support the UK’s owners.

Chirag Shah, CEO of Nucleus Commercial Finance, said: “We’re getting on with the job of supporting businesses in 2020 and are delighted to be starting the year by announcing this new funding line with Paragon Bank.

“This funding will accelerate the support we’re able to offer to SMEs who are struggling to secure funding from traditional banks. 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.

“We are committed to offering multiple funding options to best suit the needs of SMEs across the UK. Every business has different financial needs and our range of products reflects this. In addition to our tailored products, our bespoke approach to underwriting ensures that the specific goals and ambitions of each business are met, so that they continue to grow and succeed.”

Adam Daniels, managing director of structured lending at Paragon, added: “We are delighted to be able to provide funding for Nucleus. 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.

“Committing £25 million to Nucleus is a testament to the strong client relationships built and the hard work carried out by Paragon’s structured lending team.”