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Nucleus increases borrowing limit for SMEs



Nucleus Commercial Finance has increased the borrowing limits on its cash flow finance product.

The alternative finance provider has raised the upper limit from £25,000 to £200,000 in response to broker demand.

It comes after Nucleus increased the maximum term length from three to five years, which is available to those businesses looking to borrow over £75,000.

Read more: Nucleus Commercial Finance hits £1bn lending milestone

“Demand for cash flow finance is growing, and we expect this trend to continue as uncertainties around Brexit reduce and businesses start investing and planning for growth,” Chirag Shah (pictured), chief executive of Nucleus Commercial Finance, said.

“Whether it be to help even out seasonal peaks and troughs, to mitigate the impact of long payment terms, or to expand a business, this product can enable businesses to achieve their strategic goals.

“Following feedback from brokers we’ve made our offering increasingly flexible to provide more competitive solutions to our customers.

“Ultimately, it’s our duty as an alternative finance provider to help UK small – and medium-sized enterprises (SMEs) thrive by finding flexible options that suit their needs.”

Nucleus secured a £25m funding line from Paragon Bank last month which it said would boost its lending to SMEs.

Read more: Nucleus targets start-ups with new type of loan

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New KYC solution launched to combat financial fraud




Regtech specialist Kompli-Global has launched a new know your customer (KYC) solution to help financial services firms combat money laundering and fraud.

Kompli-Outsource uses augmented intelligence and human expertise to provide up to date KYC information to regulated entities during customer onboarding. An initial due diligence report will flag any irregularities and verify the identity of the customer.

The launch comes as UK Finance warned that online fraud cases are rising across the UK.

Read more: City regulator makes consumer investments its priority

Impersonation scams nearly doubled in the first half of 2020, and £207.8m was lost to authorised push payment (APP) fraud in the first half of 2020. APP fraud occurs when a customer is tricked into making a payment to an account that is controlled by a criminal.

“In these challenging times, companies have enough on their plate ensuring they generate revenue for their businesses,” said Martin Pashley, chief commercial officer at Kompli-Global.

Read more: Covid-19 could boost lending industry’s use of open banking

“Our technology and expertise in KYC due diligence will enable such organisations to remain compliant and focus on what they do best.

“By giving us some basic client information, our technology and expertise delivers comprehensive onboarding reports that mean regulated entities, whatever their sector, can be more confident that they keep criminals out and avoid fines for non-compliance.”

Read more: The need to share data

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HSBC Loyalists Lose Faith After Stock’s $83 Billion Plunge




(Bloomberg) — HSBC Holdings Plc’s tumbling stock price is testing the patience of even the bank’s most loyal investors.

Choi Chen Po-sum, a former vice chair of Hong Kong’s exchange who has owned HSBC shares for more than 40 years, now calls her investment a mistake. Simon Yuen, a money manager who has lobbied unsuccessfully for the bank to reinstate its dividend, says the stock’s slump to a 25-year low may have further to go. Ping An Insurance Group Co., HSBC’s biggest shareholder, has passed on opportunities to express confidence in the bank, saying only that its holding is a “long-term financial investment.”

The responses underscore the depth of investor malaise toward HSBC, which has tumbled faster than every other major financial stock globally over the past six months. Even historically upbeat sell-side analysts have mostly turned bearish on the bank amid growing concerns about loan losses and its ability to navigate mounting tensions between the U.S. and China.

“I’ve lost faith,” said Choi, 89, who’s chair of National Resources Securities Ltd. in Hong Kong, where scores of individual investors have long considered HSBC to be a core holding. “You want the shares to recover? Don’t even think about it.”

HSBC’s Hong Kong shares lost as much as 2.6% as of 11:15 a.m. on Thursday. The stock has tumbled more than 9% so far this week, bringing the year’s decline to 54% and making it the worst performer in the benchmark Hang Seng Index. In London, the shares have fallen about 51%. After losing $83 billion of market value this year, HSBC is now smaller than Commonwealth Bank of Australia and trailing far behind major rivals such as Citigroup Inc.

Analysts have never been so downbeat on HSBC, with only 16.7% of 30 who follow the stock having a buy recommendation whereas just two years ago the ratio was 47%. Even after its slump, the bank is valued at 16.3 times forecast earnings for 2020, a pricier level than some peers. Both Citigroup and smaller rival Standard Chartered Plc trade at multiples of about 13.

Ping An, which has owned a major stake in HSBC since late 2017, has seen the value of those shares tumble by at least $8.6 billion over the past three years, according to data compiled by Bloomberg.

The depth of HSBC’s slump “means even long-term investors are starting to lose confidence in the stock, which is certainly a bad sign,” said Benny Lee, a director at Plotio Financial Group Ltd.

HSBC declined to comment on its share performance.

The growing disillusion in Hong Kong with the bank’s prospects comes after it earlier this year was among banks forced by U.K. regulators to scrap its dividend, causing an uproar with the city’s broad base of retail investors. It has also rankled China over its participation in the American investigation of Huawei Technologies Co.

Concerns are mounting that the bank’s expansion in China will be derailed after the ruling Communist Party’s Global Times newspaper reported over the weekend that HSBC could be named an “unreliable entity.” Penalties for companies that appear on the list include restrictions on trade, investments and visas. HSBC has declined to comment on the article.

“Should it be on the list, even without tough measures taken, its mainland China business would likely be adversely impacted as its clients reduce transactions,” Citigroup analysts led by Yafei Tian wrote in a note on Tuesday. “Mainland China clients in HK might also avoid unnecessary transactions with HSBC HK. In a worst case scenario, HSBC might be forced to divest its investments in mainland China.”

HSBC Chief Executive Officer Noel Quinn last month warned about tough times ahead while reporting that first-half profit halved and predicting loan losses could swell to $13 billion this year. Quinn said the bank would attempt to hasten a shakeup of its global operations, accelerating a further pivot into Asia as its European operations lose money.

Some investors aren’t convinced it’s enough.

In Hong Kong’s derivatives market, the second-most traded HSBC stock option on Thursday was a bearish contract betting the shares will drop to HK$18.50 by the end of December. That implies a downside of more than 30% from HSBC’s current levels. The most traded option was a bullish call that expires next week at HK$30, with the contract losing three-quarters of its value.

“The share price will hardly recover in the near term and there’s still room for a further decline,” said Yuen, founder of Surich Asset Management. “Hong Kong investors’ love for HSBC is still there, but it’s indeed heartbreaking. The times have changed.”

(Updates with HSBC options trading in the penultimate paragraph.)

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Timbercreek Financial Declares September 2020 Dividend | 2020-09-23 | Press Releases




TORONTO, Sept. 23, 2020 (GLOBE NEWSWIRE) — Timbercreek Financial (TSX: TF) (the “Company”) is pleased to announce that its board of directors (the “Board”) has declared a monthly cash dividend of $0.0575 per common share (“Common Share”) of the Company to be paid on October 15, 2020 to holders of Common Shares of record on September 30, 2020.

The Company also offers a Dividend Reinvestment Plan (the “Plan”), which is eligible to holders of Common Shares and provides a convenient means to purchase additional Common Shares by reinvesting cash dividends at a potential discount and without having to pay commissions, service charges or brokerage fees.

Pursuant to the Plan and at the discretion of Timbercreek Capital Inc., the Manager, Common Shares will be acquired in the open market at prevailing prices or issued from treasury at 98 percent of the average market price (the “Average Market Price”) for the five trading day period ending on the third business day immediately prior to the dividend payment date (the “Trading Period”).

Common Shares acquired under the Plan will be automatically enrolled in the Plan. Shareholders who hold their Common Shares through a broker, financial institution or other nominee must enroll for distribution reinvestment through their nominee holder.

The full text of the Plan can be obtained on the Company’s website at

About Timbercreek Financial

Timbercreek Financial is a leading non-bank, commercial real estate lender providing shorter-duration, structured financing solutions to commercial real estate investors. Our sophisticated, service-oriented approach allows us to meet the needs of borrowers, including faster execution and more flexible terms that are not typically provided by Canadian financial institutions. By employing thorough underwriting, active management and strong governance, we are able to meet these needs while targeting strong risk-adjusted returns for investors.


Timbercreek Financial

Cam Goodnough

President & CEO

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