Allica Bank review: Rates, applications & more

Allica Bank launched in 2019 and is a UK-based digital-first bank that offers a range of online banking services to established small and medium-sized enterprises (SME).

This review takes a closer look at the business loans available from Allica Bank.

An overview of Allica Bank business loans

Some of the types of business loans available from Allica Bank include:

Unsecured business loans

Allica Bank offers flexible finance tailored to your business with its growth finance solutions. Designed for established UK businesses, you can borrow up to £10 million to help your company reach its goals.

Unsecured options include a revolving line of credit that lets you borrow as and when required, or term loans that enable you to borrow a lump sum that you repay over a fixed period.

Secured options are also available for businesses wishing to borrow against assets, such as machinery.

Secured business loans

Bridging loans and commercial mortgages are both available with Allica Bank. In both cases, the loan is secured against the property.

A bridging loan might be suitable if you’re looking for short-term funding to bridge the gap when buying or renovating property. Loan terms range from three to 24 months, and you can borrow up to £10 million.

Alternatively, a commercial mortgage could be suitable if you’re investing in new premises for your company or refinancing an existing business mortgage.

Growth Guarantee Scheme

Allica Bank is approved to offer finance through the Growth Guarantee Scheme (GGS). This replaced the Recovery Loan Scheme in 2024 and is a government initiative designed to support small businesses wanting to access finance to help them grow.

Through the scheme, your business can get access to asset finance of up to £1 million and business loans of up to £2 million. The scheme is open to UK-based businesses with a turnover of up to £45 million.

Additional funding products

If your business is looking to acquire new equipment and tools, but can’t afford to pay for them outright, you could apply for asset finance with Allica Bank. This enables you to borrow up to £2.5 million to purchase the latest equipment to help your business expand and succeed.

You’ll pay in monthly instalments and once you’ve made the last repayment, the equipment belongs to you. Terms last up to seven years.

What is Allica Bank’s typical interest rate?

The interest rate you pay will depend on the type of product you’ve applied for, as well as other factors such as the size of your business, its annual turnover and your business credit history.

More established businesses with a strong financial record and credit history are likely to qualify for more favourable rates than newer businesses with a limited credit history.

How much can I borrow with an Allica Bank business loan?

The amount you can borrow will primarily depend on the type of business loan you’re applying for. Here’s a quick summary of the borrowing amounts for each loan type:

Growth finance solutions: Between £1 million and £10 million
Bridging loans: Between £150,000 and £10 million
Commercial mortgage: Between £150,000 and £10 million
Growth Guarantee Scheme: Between £30,000 and £1 million for asset finance and £150,000 and £2 million for business loans
Asset finance: Between £25,000 and £2.5 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 Allica Bank business loan?

Allica Bank doesn’t publish its acceptance rates, but in general, you’ll find it easier to get accepted if you meet the eligibility criteria, have a good business credit record and can show that your business can comfortably afford the repayments.

Eligibility criteria and whether you qualify

Exact criteria can vary depending on the type of business loan you’re applying for, but you’ll usually need to:

Be a UK-registered limited company, limited liability partnership (LLP), partnership or sole trader
Have at least two years of full financial accounts
Meet credit and fraud checks, as well as lending assessments

Certain products will also stipulate that your company must meet a minimum turnover requirement, and certain types of business may be excluded.

Additional information

Before applying for a business loan with Allica Bank, it’s important to check the terms and conditions carefully and take note of the following:

Early repayment fees

Depending on the type of business loan you apply for, you may have to pay an early repayment fee if you wish to pay back your loan before the end of the term.

For example, if you repay your bridging loan before the minimum loan term of three months is up, you’ll be charged a fee. Similarly, you may be charged a fee if you repay your commercial mortgage in full before the end of the term. Your offer letter should state how much this will be.

How long does it take to get approved?

Allica Bank aims to approve business loans fairly quickly and you should hear whether you’ve been successful within two to three days of applying.

Estimated time to receive funds

Once your business loan has been approved, you should receive your funds within a few days, although the exact timeline will depend on how much you’re borrowing and the type of loan you’ve chosen.

Can a loan be repaid early?

Yes, you can repay a business loan from Allica Bank early but be aware that an early repayment charge may apply. This will typically be a percentage of the outstanding loan balance, but you can find the full details in your offer letter.

Is security required?

Whether you need to provide security for your loan depends on the loan you’re applying for. Commercial mortgages and bridging loans, for instance, are usually secured against the property being purchased or renovated, while asset finance must be secured against the equipment or machinery you’re investing in.

Keep in mind that if your loan is secured and you fail to keep up with your repayments, your asset could be at risk. This means the lender could repossess the asset and sell it to recover the money.

What documentation is required

When applying for a business loan you’ll need to provide certain information and documentation.

Business information

You’ll typically need to provide your business’s registered company number, business name and company address.

You may also need to say how long your business has been trading for and provide your annual turnover. It’s a common request to supply financial records such as bank statements, profit/loss statements, balance sheets and cash flow statements to support this. You may also need to provide a business plan.

Business owner information

In addition, you’ll need to supply the details of the business owner(s), including name, address, phone number and email address.

Funding requirement

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

How to apply for a Allica Bank business loan

When applying for a business loan with Allica Bank, you’ll usually need to complete a short enquiry form to request a call back so that your requirements can be discussed.

Is the application process different to other lenders?

Unlike some lenders, particularly the high street banks, you won’t be able to simply apply for a loan directly through the Allica Bank website. Instead, you must request a call back so that your local relationship manager can contact you and help you find the right loan option for your business.

How to improve your chances of getting funded

You’re most likely to get accepted for funding if you meet the eligibility criteria, and if you have a solid business plan in place. It’s also essential to be honest when completing your application as it could be rejected if you’ve failed to inform the provider about something that could affect your ability to repay the loan.

Businesses with a good credit history, healthy cash flow and up-to-date financial records are more likely to get accepted for business funding, and on more favourable terms too. For instance, you might qualify for a larger borrowing sum at a better rate of interest.

Pros & cons of a Allica Bank business loan

Pros

Variety of business loan options
Borrowing sums are higher compared to some competitors
A relationship manager can help you understand which loan options are best for your business
Allica Bank is approved to offer finance through the GGS

Cons

Fees often apply
You won’t be able to apply directly through the website
If you choose a secured loan, your asset could be at risk if you fail to meet your repayments

Alternative funding options for different lenders

If the above business loans don’t seem quite right for your business, you could explore alternative options from other lenders. These could include:

Why use a finance broker?

A finance broker can make the process of comparing and applying for business loans much simpler than if you do it all yourself. That’s because a finance broker has access to a range of different lenders and loan options and can help you find lenders that are more likely to accept your application. This can be particularly beneficial if you haven’t been trading for long and don’t have much of a credit history, or if you’ve had problems with debt in the past.

A good finance broker will also be able to talk you through any fees that might apply and complete your application on your behalf.

Just be aware that some brokers charge fees. This might be a flat fee or a percentage of the funds raised, so be sure to check.

Get started with Swoop's business funding platform

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.

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