Aldermore business loan review: Stats & eligibility

Established in 2009, Aldermore Bank offers business finance solutions to small and medium-sized enterprises (SMEs). This review takes a closer look at the business loans it offers.

An overview of Aldermore business loans

Some of the types of business loans available from Aldermore include:

Invoice finance

Invoice finance is a type of secured borrowing that uses your company’s invoices as collateral. With Aldermore, you can borrow up to 90% of the value of your business’s unpaid invoices and choose from either invoice discounting or invoice factoring.

With invoice discounting, you collect payments from your customers as usual. You then repay the amount borrowed to Aldermore, retaining the portion of the invoice value that wasn’t part of the finance agreement, minus fees.

With invoice factoring, Aldermore collects payment for your invoices directly from your clients and returns the remaining portion to you, minus fees.

Asset finance

Asset finance is another type of secured lending. It enables companies to acquire assets such as machinery, equipment and vehicles, without paying for them upfront. Instead, you spread your payments over an agreed period of time, with interest added.

Aldermore offers asset finance for the following industries:

Construction
Transportation
Agriculture
Energy and infrastructure

Hire purchase, leasing and refinancing are all available with Aldermore. Hire purchase means you’ll own the asset at the end of the agreement once you’ve paid a final fee, while leasing enables you to return the asset or extend the agreement at the end of the term.

Commercial real estate

Commercial real estate solutions include commercial mortgages of between £3 million and £50 million, with repayment terms of up to 20 years. Or property developers and housebuilders can apply for property development loans of between £1 million and £50 million, with terms of up to 30 months.

In addition, you can take out a VAT loan for commercial property, helping to reduce the cash flow burden if you’re also taking out a new commercial mortgage.

Football finance

Aldermore also provides flexible finance for football clubs in the UK that want to accelerate payments they receive for English Premier League TV rights and player transfers.

Growth Guarantee Scheme

Aldermore is approved to offer finance through the Growth Guarantee Scheme (GGS). Having replaced the Recovery Loan Scheme in 2024, this is a government initiative designed to support small businesses looking to access finance to help them grow.

If you apply through the scheme, your business can choose an invoice finance facility offering up to £2 million per business group over a term of up to three years. There’s also a term loan that sits alongside the invoice finance facility with Aldermore. This offers up to £2 million over a term of up to six years.

The scheme is open to UK-based businesses with a turnover of up to £45 million.

What is Aldermore’s typical interest rate?

The amount of interest you pay with Aldermore depends on factors such as the type of loan you’re applying for, the size of your business and its credit history.

You may qualify for more competitive rates if your business has been trading for a few years, has a solid credit history and strong financial standing.

How much can I borrow with an Aldermore business loan?

The amount you can borrow with Aldermore depends on the type of loan you’re applying for. Here’s a quick summary of the borrowing amounts for each loan type:

Invoice finance: Up to 90% of the value of your business’s unpaid invoices.
Asset finance: Generally, between £25,000 and £150,000 depending on the type of asset finance and the asset’s value.
Commercial mortgage: From £3 million to £50 million.
Property development finance: From £1 million to £50 million.
Growth Guarantee Scheme: Up to £2 million.

The exact amount your business can borrow will also depend on factors such as your business size, annual turnover and credit rating.

What is the acceptance rate for an Aldermore business loan?

Aldermore doesn’t publish its acceptance rates, but you’re more likely to get accepted if you meet the eligibility criteria, your business has a strong trading and credit history, and you can prove that your business can meet the repayments.

Eligibility criteria and whether you qualify

Exact eligibility criteria depend on the type of loan you’re applying for. General criteria include you must be a UK-registered business and pass the necessary fraud and credit checks.

Aldermore says it considers applications from sole traders, partnerships, limited liability partnerships and limited companies.

If you’re applying for invoice finance, you’ll also need to have a minimum annual turnover of £750,000. To qualify for the Growth Guarantee Scheme, your turnover must not exceed £45 million.

Additional information

Before applying for business finance with Aldermore, ensure you read through the small print carefully, paying particular attention to the following:

Early repayment fees

If you apply for a commercial mortgage with Aldermore and repay the debt early, you may have to pay an early repayment charge. This will be a percentage of the remaining loan amount. This may also apply to certain types of asset finance but check your agreement.

How long does it take to get approved?

Approval times depend on the type of business finance, but in most cases, it can take between a few days to a few weeks. Providing the necessary documentation and completing forms correctly can speed up the process.

Keep in mind that with a commercial mortgage, the value of the property will need to be assessed before your loan can be approved.

Estimated time to receive funds

The length of time it takes to receive funds will also range between a few days to a few weeks, depending on the type of finance you’ve applied for.

Can a loan be repaid early?

This depends on the loan type. Commercial mortgages and asset finance agreements can be repaid early but may incur an early repayment fee.

Is security required?

Yes, you will usually need security if you apply for a loan with Aldermore. Commercial mortgages and property development finance will be secured against the property in question.

Asset finance is secured against the equipment or machinery you wish to require, while invoice finance is secured against your unpaid invoices.

What documentation is required

Aldermore says it will tell you what information and documentation is required as part of the application process.

Business information

Typical requirements are likely to include your business’s registered company number, business name and company address. You may also be asked to provide financial documents, such as your bank statements and balance sheets, plus a business plan.

Business owner information

You’ll usually need to provide the names, addresses, email addresses and phone numbers of all business owners.

Funding requirement

You may also be asked to state how much you wish to borrow and what you plan to use the funds for.

How to apply for an Aldermore business loan

If you want to apply for asset finance or invoice finance, you’ll need to request a call back by completing the online form on Aldermore’s website. For invoice finance, you can also call 0161 2385006.

If you want to apply for commercial real estate, you should email CREOriginations@aldermore.co.uk. For football finance, you can make an enquiry through the website.

Is the application process different to other lenders?

Unlike some high street lenders that let you apply for business loans directly, you won’t be able to do this with Aldermore. Instead, you must contact Aldermore online or by phone to be able to discuss your options in more detail. However, this also means the service you receive will be tailored to your specific needs.

How to improve your chances of getting funded

Your chances of getting funding will be higher if your business has been trading for a few years, has a strong financial track record and a good credit score. It’s also important to answer any application questions honestly and accurately and provide the necessary documentation as quickly as possible.

If you follow these steps, you may also qualify for a larger loan amount at a more favourable interest rate.

Pros & cons of an Aldermore business loan

Pros

Range of different business finance options available
Borrowing sums can be high
You’ll get dedicated support to help you find the right funding option
Aldermore is approved to offer finance through the GGS

Cons

Fees may apply
You won’t be able to apply directly through the website
Your assets could be at risk if you fail to repay your loan

Alternative funding options for different lenders

If you don’t want to apply for the above business loans, there are several other finance options available from other lenders. These could include:

Why use a finance broker?

A finance broker can make comparing and applying for business loans much easier than doing it yourself. They have access to a wide range of lenders and loan products and can help identify those most likely to approve your application. This can be especially useful if your business is new, has a limited credit history, or you’ve struggled with debt in the past.

A good broker will also explain any fees involved and handle the application process on your behalf. However, some brokers charge for their services – either a flat fee or a percentage of the amount borrowed – so always check what costs apply before proceeding.

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Our team at Swoop would be happy to discuss your business funding requirements with you to help you find the right deal to support your application and help your business grow.

Aldermore business loan review: Interest rates, eligibility, and the application process