Allica Bank

Allica Bank launched in 2020 as a purpose-built digital challenger bank designed to serve established small and medium-sized businesses in the UK. Unlike many challenger banks that focus on start-ups or personal banking, Allica was created specifically for the underserved middle ground of UK business banking — established SMEs with annual turnover typically between £1 million and £100 million that had been poorly served by both the largest high street banks and the smallest fintech start-ups. This focused positioning has driven rapid growth, with Allica building a substantial commercial lending book and earning recognition as one of the UK's fastest-growing business banks.

Allica Bank received its full UK banking licence from the Prudential Regulation Authority in 2019 and launched its commercial lending operations in 2020. The bank has attracted significant investment from institutional backers, providing the capital base to support its ambitious growth plans while maintaining strong capital ratios. This institutional backing, combined with the bank's full banking licence and FSCS-protected deposit base, gives borrowers confidence in Allica's stability and long-term market presence.

The bank's commercial mortgage proposition is built around three core principles: speed, simplicity, and personal service. Allica has invested heavily in technology to streamline the commercial lending process, reducing the administrative burden on borrowers and enabling faster credit decisions. However, unlike purely digital lenders that rely entirely on algorithms, Allica pairs its technology platform with experienced human relationship managers who provide personal guidance and support throughout the lending process. This hybrid approach — using technology for efficiency but maintaining human expertise for complex decision-making — has proven highly effective in the commercial lending market.

Allica provides commercial mortgages for the acquisition, refinance, and equity release of commercial and semi-commercial properties. Loan sizes range from £100,000 to £20 million, with loan-to-value ratios of up to 75%. Terms of up to 25 years are available, with fixed-rate periods typically of three to five years. The bank assesses both owner-occupied and investment commercial properties, with a pragmatic underwriting approach that considers the full picture of the borrower's financial position and the property's income-generating potential.

One of Allica's most distinctive features is the speed of its credit decisions. The bank can typically provide a decision in principle within 24 hours of receiving a full enquiry, significantly faster than most high street banks. This speed comes from the bank's purpose-built technology platform, which automates many of the data gathering and analysis tasks that cause delays in traditional banking, combined with an empowered credit team that can make decisions without the multiple layers of approval that slow down larger institutions. For borrowers in competitive property markets or with time-sensitive requirements, this speed can be decisive.

Allica's underwriting philosophy reflects its focus on established SMEs. The bank assesses applications based on the overall quality of the borrower and the property, rather than applying rigid criteria that reject applications on single data points. This means Allica can consider borrowers who may not fit neatly into high street bank criteria — for example, businesses with strong recent performance but shorter trading histories, borrowers with complex income structures, or properties with characteristics that sit outside standard lending guidelines. The bank's relationship managers take the time to understand each case and present it to the credit team with the full context needed for an informed decision.

For investment properties, Allica assesses rental income against mortgage payments using coverage ratios that reflect the property type and tenant quality. The bank finances offices, retail units, industrial properties, warehouses, mixed-use buildings, and various specialist commercial assets. For semi-commercial properties with both commercial and residential elements, Allica can assess the blended income stream, often achieving more favourable outcomes than lenders who apply purely commercial criteria to the entire property.

For owner-occupied properties, Allica focuses on the business's trading performance, cash generation, and future prospects. The bank is willing to consider businesses with as little as two years of trading history, provided the financial performance is strong and the management team has relevant experience. This willingness to consider younger businesses — combined with fast decision-making and competitive rates — makes Allica a strong option for growing SMEs that are looking to purchase their own premises.

Allica's typical interest rates for commercial mortgages start from around 5.5% for the strongest applications, with rates varying based on LTV, property type, borrower strength, and loan size. The bank offers competitive fixed rates for three and five-year periods, providing certainty of costs for businesses that value predictable monthly payments. Arrangement fees are typically 1% to 2% of the loan amount, with valuation and legal costs charged separately.

The application process with Allica is designed to be as streamlined as possible. Initial enquiries can be submitted through the broker portal or directly to an Allica relationship manager. The bank's technology platform enables fast data gathering and analysis, with decisions in principle typically available within 24 hours. Once terms are agreed, the formal application requires standard documentation including business accounts, bank statements, property details, and identification. Allica instructs valuations promptly and works with an efficient panel of solicitors to maintain momentum through to completion. Standard commercial mortgage completions typically take four to six weeks from formal application — significantly faster than most high street banks.

Allica has also built a strong reputation for the quality of its broker service. The bank's broker-facing team provides responsive, knowledgeable support, and the technology platform gives brokers real-time visibility of application progress. This transparency and responsiveness have earned Allica consistently high satisfaction ratings from the broker community, and the bank has won multiple industry awards for the quality of its intermediary proposition.

The bank continues to invest in product development and technology, expanding its commercial lending capabilities and improving the efficiency of its processes. Recent developments include the introduction of new product variants for specific property types and borrower segments, enhancements to the digital application process, and expansion of the relationship management team to support growing lending volumes.

For Commercial Mortgage Broker clients, Allica Bank is an excellent choice for established SME borrowers who want the speed and efficiency of a digital bank combined with the personal service and flexible underwriting of a specialist lender. The bank's rapid decision-making, competitive pricing, and pragmatic approach to credit assessment make it a strong alternative to both traditional high street banks and specialist lenders, particularly for borrowers who value fast execution and a straightforward application process.