Allica Bank vs OakNorth: UK SME challenger banks compared 2026
Two of the UK's strongest SME challenger banks, both PRA-regulated, both serving the £150k+ commercial-lending segment that high-street banks have largely retreated from. Allica Bank ranges from £150k to £5m with published from-rates and a 5 to 10 day decision. OakNorth ranges from £500k to £50m+ on bespoke pricing and a 7 to 14 day decision. The right answer is dictated almost entirely by ticket size and deal structure.
Quick verdict
- Pick Allica Bank for £150k to £500k, where it is genuinely the only mainstream-bank choice.
- Pick OakNorth for £1m+ deals where bespoke pricing and flexibility matter more than published rates.
- For deals in the £500k to £5m overlap band, run both quotes; pricing typically depends on the asset and the relationship.
Side-by-side
| Allica Bank | OakNorth | |
|---|---|---|
| Product type | SME term loan + commercial mortgage | SME term loan + bridging |
| Founded | 2019 | 2015 |
| Ticket range | £150k to £5m | £500k to £50m+ |
| Typical rate | From 7.99% APR | Bespoke |
| Decision time | 5 to 10 business days | 7 to 14 business days |
| Soft search at quote | No | No |
| Limited companies only | Yes | Yes |
| FCA regulated | Yes | Yes |
| Companies House | 11470391 | 08595042 |
| Overall rating | 4.4 / 5 | 4.2 / 5 |
| Rate transparency | 5/5 | 3/5 |
| Eligibility clarity | 4/5 | 4/5 |
| Decision speed score | 3/5 | 3/5 |
| Decline handling | 4/5 | 4/5 |
Product overview
Allica Bank
Allica Bank is a PRA-regulated UK challenger bank founded 2019, focused on the £150k to £5m SME ticket band that mainstream high-street banks have abandoned. Rates start from 7.99% APR for SME term loans and commercial mortgages. Pricing is competitive and rate transparency is excellent, but decision speed (5 to 10 business days) lags fintech alternatives. Best fit: established Ltd companies trading 2+ years needing asset-backed facilities at £250k or above. Companies House 11470391.
OakNorth
OakNorth Bank is a PRA-regulated UK bank founded 2015 that lends to established SMEs at the £500k to £50m+ ticket band, including bespoke commercial term loans, acquisition finance and bridging. Pricing is bespoke and strong, underwriting uses proprietary credit modelling, and decisions run 7 to 14 business days through a real banker, not a self-serve portal. Best fit: established Ltd companies with strong financials and a clear growth, acquisition or commercial real estate story. Companies House 08595042.
When Allica wins
- Tickets in the £150k to £500k band where OakNorth will not engage.
- You want a published from-rate to anchor pricing expectations.
- You want slightly faster decisioning (5 to 10 days vs 7 to 14).
- Owner-occupied commercial mortgages and asset finance for established Ltd companies.
When OakNorth wins
- £1m+ tickets where OakNorth's bespoke credit modelling can underwrite cases mainstream banks decline.
- Acquisition finance and management buyouts where the deal needs structuring around future cashflow.
- Commercial real estate development with a clear exit story.
- Strong financials but a non-standard structure (group reorganisation, recent acquisition, sector concentration).
Cost comparison on a £750k ask
On a £750,000 commercial-property-backed term loan over 7 years, Allica typically prices in the 7.99% to 9.5% APR band, well-published. OakNorth on the same deal prices bespoke; in our recent broker experience pricing lands in a similar 7.5% to 9% range when the asset and covenants are clean, but can move higher for non-standard structures or lower at scale. Allica wins on transparency, OakNorth wins on flexibility for non-standard structures. Both are materially cheaper than fintech alternatives at this ticket size.
FAQ
Are Allica and OakNorth both real UK banks?
Yes. Allica Bank Limited (company 11470391, founded 2019) and OakNorth Bank plc (company 08595042, founded 2015) are both PRA and FCA regulated UK banks with full UK banking licences. Linked deposits attract FSCS protection up to the standard £85,000 per eligible depositor.
What is the practical ticket-band difference?
Allica covers £150k to £5m. OakNorth starts at £500k and runs to £50m and beyond. There is overlap in the £500k to £5m band where both will compete; below £500k Allica is the only option, above £5m OakNorth is the only option.
Which is faster, Allica or OakNorth?
Allica is typically faster, with decisions in 5 to 10 business days. OakNorth takes 7 to 14 days because the bank engages a relationship banker and runs proprietary credit modelling on each case. Neither is fast in the fintech sense; both are faster than Lloyds, NatWest or HSBC for the same deal.
Do they both publish rates?
No. Allica publishes from 7.99% APR as a benchmark for SME term loans. OakNorth pricing is bespoke and not headlined; you only see the rate after a credit committee has reviewed the deal.
Are they self-serve like fintech lenders?
No. Both are relationship-led with a real banker assigned to the deal. Expect to provide full filed accounts, management accounts, asset valuations and a properly worked-up business case. Neither is a 5-minute online application.
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Open our /get-quotes/ form →Reviewed by Oliver Mackman, Director. Last reviewed: 2026-05-07.