Recognise Bank

Recognise Bank is a UK-regulated challenger bank that launched in 2020 with a mission to address the persistent funding gap facing small and medium-sized businesses across the United Kingdom. The bank was founded on the insight that millions of UK SMEs — the backbone of the British economy — were being systematically underserved by high street banks that had become increasingly focused on larger corporate clients and automated lending processes that failed to accommodate the diversity and complexity of small business finance.

The bank received its full UK banking licence from the Prudential Regulation Authority and began lending operations in 2020, a challenging time to launch any new financial institution but one that ultimately demonstrated the urgent need for the kind of SME-focused lending that Recognise was designed to provide. As businesses across the UK navigated the economic disruption of the early 2020s, Recognise Bank's experienced team of relationship managers provided the personal, responsive lending service that many SMEs found impossible to access from their existing banking providers.

Recognise Bank is part of City of London Group plc, a financial services company listed on the London Stock Exchange's AIM market. This corporate structure provides the bank with access to capital and strategic oversight while maintaining the operational independence needed to make fast, flexible lending decisions. The combination of listed-company governance and specialist bank agility gives Recognise a distinctive position in the UK lending market.

The bank's commercial property lending proposition is central to its SME focus. Recognise Bank provides commercial mortgages for the acquisition, refinance, and equity release of commercial and semi-commercial properties, with loan sizes from £250,000 to £15 million. Loan-to-value ratios of up to 75% are available, with terms of up to 25 years. The bank finances offices, retail units, industrial properties, warehouses, mixed-use buildings, and semi-commercial properties, with particular strength in the kind of mainstream commercial assets that form the foundation of many SME property portfolios.

Recognise Bank's underwriting approach is built around experienced relationship managers who take the time to understand each borrower's business and property investment strategy. Unlike automated lending platforms that assess applications against rigid criteria, Recognise assigns a dedicated relationship manager to each case from the initial enquiry stage. This relationship manager acts as the borrower's advocate within the bank, understanding the full context of the application and presenting it to the credit team with the insight and detail needed for an informed decision.

This relationship-driven approach is particularly valuable for SME borrowers whose circumstances do not fit neatly into automated lending models. Business owners with complex income structures, directors of multiple companies, borrowers with overseas income or assets, and investors with growing property portfolios often find that mainstream banks cannot accommodate their applications. Recognise Bank's relationship managers have the experience and authority to assess these cases on their merits, considering the overall financial strength and track record of the borrower rather than rejecting applications based on individual data points.

The bank's credit decision-making process is designed for speed without compromising quality. Recognise can typically provide indicative terms within 48 hours of receiving a complete enquiry, with the relationship manager providing clear feedback on any aspects of the case that need clarification or strengthening. Once terms are agreed and a formal application is submitted, the bank targets formal offer issuance within three to four weeks, with standard completions achievable in six to ten weeks from formal application.

Recognise Bank's typical interest rates for commercial mortgages start from around 6.0%, with rates varying based on LTV, property type, loan size, and borrower profile. Both fixed and variable rate options are available, with fixed periods of two to five years. Arrangement fees are typically 1.5% to 2% of the loan amount. While Recognise's pricing reflects its position as a specialist SME lender rather than a high-volume high street bank, the bank competes on the overall value proposition — combining competitive pricing with personal service, flexible underwriting, and fast execution that many borrowers find superior to the impersonal and often frustrating experience of dealing with larger banks.

The bank has invested in technology to support its relationship managers and streamline the lending process. Recognise's digital platform enables efficient document management, automated data analysis, and real-time case tracking, providing the operational efficiency of a modern bank while maintaining the personal touch of an experienced relationship manager. This technology-enabled relationship management approach means borrowers get the best of both worlds: the speed and efficiency of digital processing with the understanding and flexibility of human decision-making.

Recognise Bank's approach to property assessment reflects its SME focus. The bank understands that many SME-held commercial properties are mainstream assets in good locations that generate reliable income — even if they don't match the institutional-grade criteria that the largest banks prioritise. Properties with shorter leases, smaller lot sizes, or in secondary but commercially viable locations can all be considered by Recognise where the overall case — including borrower quality, rental income, and property fundamentals — supports the lending decision.

The bank lends to individuals, limited companies, SPVs, LLPs, and partnerships, providing flexibility in borrower structure. Personal guarantees are required for company borrowing, and the bank assesses all directors and significant shareholders as part of the application process. For portfolio landlords, Recognise can assess applications holistically, considering the borrower's overall portfolio performance and financial strength.

For Commercial Mortgage Broker clients, Recognise Bank is recommended for SME borrowers who want dedicated personal service and flexible underwriting from a fully regulated UK bank. The bank's combination of experienced relationship management, pragmatic credit assessment, and genuine focus on SME lending makes it a strong option for borrowers who have been frustrated by impersonal service or inflexible criteria at larger banks. Our relationship with Recognise Bank's team enables us to present cases effectively and access the bank's most competitive terms for our clients.