Lender review · SME term loan + commercial mortgage

Allica Bank

4.4 / 5 £150k to £5m · 5 to 10 business days ·FCA regulated

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.

OM

Oliver Mackman

Director, BestBusinessLoans

Oliver leads BestBusinessLoans's editorial reviews and methodology. With a background in UK commercial finance, he oversees lender research, rate verification and review independence.

Last reviewed: 26 April 2026

At a glance

Product
SME term loan + commercial mortgage
Ticket size
£150k to £5m
Typical rate
From 7.99% APR
Decision time
5 to 10 business days
Soft search at quote
No
Limited companies only
Yes
FCA regulated
Yes (check the FCA Register)
Companies House
11470391
Founded
2019

Scores against our methodology

  • Rate transparency5/5
  • Eligibility clarity4/5
  • Decision speed3/5
  • Decline handling4/5

Full methodology.

How Allica Bank works

Allica Bank operates as a sme term loan + commercial mortgage provider in the UK SMB market. 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.

The product mechanic is straightforward in shape but the underwriting is sector-specific. Tickets sit in the £150k to £5m band, decisions land within 5 to 10 business days, and the published rate range is From 7.99% APR. A hard search may apply at quote stage; ask before you submit if credit-file footprint matters to you. Allica Bank is FCA regulated.

Where Allica Bank fits best: established ltd companies, £250k to £5m tickets, asset-backed lending. Where it does not fit: sub-£150k tickets, sub-2-year trading, sole traders.

Pricing examples

Worked examples using Allica Bank's published rate range (From 7.99% APR). Simple-interest approximation, mid-band rate. Real offers will differ and should be confirmed on the lender quote.

Ticket Term Estimated total cost Approx monthly
£25,000 24 months £28,995 £1,208
£50,000 36 months £61,985 £1,722
£100,000 48 months £131,960 £2,749

Indicative only. Confirm on a Allica Bank quote.

Eligibility

  • Trading time: typically 12 to 24 months minimum for the cleanest pricing. Weakness flagged: Sub-2-year trading.
  • Turnover floor: not always published. As a working figure, expect a £100k+ turnover requirement for term loans of £50k+. Smaller tickets and MCA structures have lower floors.
  • Sector exclusions: Sub-£150k tickets.
  • Credit profile: Clean credit preferred; older satisfied items often acceptable.
  • Company structure: Limited companies only.
  • Best fit: Established Ltd companies; £250k to £5m tickets; Asset-backed lending.

Pros

  • + Genuine PRA-regulated bank; FSCS deposit protection on linked accounts.
  • + Rate transparency among the best on the market.
  • + Strong for £250k+ tickets.
  • + Real underwriting human attached to the case.

Cons

  • − Slower than fintech alternatives.
  • − Hard credit search at full application.
  • − Below £150k they will not engage.

Best for

  • · Established Ltd companies
  • · £250k to £5m tickets
  • · Asset-backed lending

Weak at

  • · Sub-£150k tickets
  • · Sub-2-year trading
  • · Sole traders

When to use Allica Bank

Use Allica Bank when

Your application matches the best-fit profile: established ltd companies, £250k to £5m tickets, asset-backed lending. The published ticket range (£150k to £5m) covers your ask, the decision speed (5 to 10 business days) fits your cash-gap timeline, and the rate range (From 7.99% APR) is acceptable to you given your credit profile.

Do not use Allica Bank when

Your profile sits in the weak-at list: sub-£150k tickets, sub-2-year trading, sole traders. Allica Bank will likely decline, and the decline itself can sit on broker records for 90 days. If you have any of these flags, route directly to a specialist (post-decline lender, MCA against card flow, asset-backed alternative) rather than using Allica Bank as a screen.

FAQs

What is the minimum trading time for Allica Bank?

Allica Bank is weaker on sub-2-year trading. As a working figure, expect Allica Bank to ask for at least 12 months of trading for most product lines, and 24 months for the cleanest pricing.

Does Allica Bank require a personal guarantee?

Most UK SMB lenders require a personal guarantee from at least one director. Allica Bank is no exception in the standard case. The few exceptions: asset-backed lending where the asset itself stands as security, and a small number of MCA structures where card flow is the underwriting basis. For sme term loan + commercial mortgage specifically, expect a PG to be requested.

How fast does Allica Bank fund?

Allica Bank quotes 5 to 10 business days for an underwriting decision. Funding to bank account typically follows within one to three working days of acceptance, subject to KYC, signed documents, and (where applicable) registration of any debenture or charge.

What rate should I expect from Allica Bank?

Allica Bank's published range is From 7.99% APR. The headline number is rarely the offered number. Rate transparency on this lender scores 5/5 in our methodology. Expect the cleaner end of the band only if you have 2+ years of trading, clean credit, and turnover comfortably above the lender's stated floor.

What happens if Allica Bank declines me?

If Allica Bank declines, you have three realistic next steps. First, ask for the decline reason in writing, most reputable UK lenders will tell you. Second, route the application to a specialist post-decline lender (Bizcap, JPM Capital, Bolton Finance) where credit issues are the constraint, or to an asset-backed alternative where security is available. Third, use a broker panel to fan the application across the lenders most likely to accept your specific decline reason. Allica Bank scores 4/5 on decline handling in our methodology.

Where to apply

Apply directly via www.allica.bank, or use our free quote form to be matched across the UK broker panel most likely to approve your specific profile, not just Allica Bank.

Specialty alternatives

See all lender reviews for alternatives.

Allica Bank compared head-to-head

Side-by-side breakdowns of rate, ticket band, decision speed, eligibility and best-fit for UK SMEs.

Reviewed by Oliver Mackman, Director. Last reviewed: 26 April 2026. Lender website: www.allica.bank.

Trusted comparison data sourced from

UK FinanceABFABusiness MoneyFundInvoiceBCR PublishingThe Gazette
85 providers compared Updated April 2026 Independent editorial