Allica Bank review: asset finance and business loans for established SMEs

Allica Bank is a UK business bank built for established small and medium-sized businesses, offering asset finance, unsecured business loans, commercial mortgages and business accounts. It is known for giving every customer a dedicated relationship manager, something many established SMEs feel they lost at the big banks. Smart Funding Solutions is an independent broker and is not part of Allica Bank, so we can compare its offer with other banks and specialist lenders. You can read more on Allica Bank's own website.

01About Allica Bank

Allica obtained its banking licence in 2019 and is headquartered in London, with hubs in Milton Keynes and Manchester. It focuses on established businesses with roughly 5 to 250 employees, a group it says has been overlooked by traditional banks.

Its lending covers commercial mortgages, asset finance, unsecured business loans, overdrafts for account holders and growth finance. Since October 2025 it has also owned Kriya, an invoice finance and B2B payments provider. Allica lends to businesses in England, Scotland and Wales.

Allica Bank is one of the lenders on our panel for asset finance and unsecured business loans.

02What Allica Bank funds

Product	What it is for	Typical size	Typical term
Asset finance (hard and medium assets)	Plant, machinery, vehicles, manufacturing and materials handling equipment, medical and agricultural kit	Around £25,000 to £2,500,000	Up to 7 years
Green asset finance	Energy-efficient and renewable equipment	Around £25,000 to £2,500,000	Agreed case by case
High net worth vehicle finance	Wheeled assets for qualifying high net worth individuals	Case by case	Case by case
Asset refinance	Releasing cash from equipment the business owns	Case by case	Case by case
Unsecured business loan	Growth, investment and working capital	Around £25,000 to £150,000	1 to 5 years

Allica's asset finance covers hard, medium and soft assets, with examples on its site including scaffolding, robotics, textile and telecoms equipment. For energy-saving and renewable kit, see our page on green business finance. To release cash from equipment you already own, see asset refinance.

Allica also offers commercial mortgages for owner-occupiers and investors, which are outside the scope of this page.

03Who Allica Bank suits (and who it may not)

Allica is built for established businesses. Based on its published criteria:

• Asset finance is available to limited companies, LLPs, partnerships and sole traders, and typically needs two years of full accounts.
• Unsecured business loans are for limited companies and LLPs only, with at least three years of filed accounts.
• Businesses must be based in England, Scotland or Wales.
• Loan affordability is tested against debt service cover, so the business needs comfortable profits.

It suits a profitable, growing business that wants a bank relationship and is buying significant equipment, or borrowing a mid-sized unsecured sum such as a £100,000 business loan. It is unlikely to suit start-ups, businesses in Northern Ireland, loss-making companies or anyone needing less than £25,000.

Allica also offers commercial mortgages for owner-occupiers and investors, which are outside the scope of this page.

04What Allica Bank looks at

For unsecured loans, Allica asks for at least three years of filed accounts and tests that the business can comfortably cover its debt repayments. Directors and beneficial owners are credit searched. For asset finance, two years of full accounts is typical.

Beyond that, you can typically expect a bank lender of this kind to ask for:

• Recent management accounts and bank statements.
• Details of the asset and supplier, for asset finance.
• Information on existing borrowing and commitments.
• A clear explanation of what the funding is for.

Personal guarantees are commonly requested on SME lending of this size. Allica says unsecured loan applications give an estimate in minutes, with funds in days once approved.

05Pros and cons

Pros

• A bank lender with a dedicated relationship manager for every customer.
• Asset finance up to £2.5 million, including green and soft assets.
• Sole traders and partnerships accepted for asset finance.
• No early repayment penalties on unsecured loans, according to Allica.
• Can offer accounts, mortgages and lending under one roof.

Cons

• Needs two to three years of accounts, so not for young businesses.
• Minimum deal size of around £25,000.
• Not available in Northern Ireland.
• Unsecured loans capped at £150,000 and limited to companies and LLPs.

06Applying through a broker vs going direct

Allica accepts applications directly and through brokers. Comparing first makes sense because bank criteria are strict: if your business falls just outside them, a specialist lender may say yes where the bank says no. Equally, if you qualify for Allica, it is useful to know how its proposal compares with other banks.

We search the market, present your accounts and plans clearly, and manage one application. It is free to enquire; any broker fee is disclosed separately before you proceed. Start with Instant Quotes and compare lenders in minutes.

07Alternatives to Allica Bank

• Aldermore: a specialist bank with strong construction and transport asset finance teams.
• OakNorth Bank: better suited to larger, fast-growing businesses needing bigger facilities.
• Kriya: owned by Allica since October 2025, worth considering directly if you want to borrow against invoices rather than take a loan.