Allica Bank has reached a £2bn milestone of commercial mortgages offered to businesses introduced by commercial finance brokers since launching in March 2020.
The bank has also expanded the criteria for its Recovery Loan Scheme (RLS) proposition for interest-only owner-occupied commercial mortgages.
The enhanced offering means it can now support newer businesses with only one year of trading accounts, experienced operators looking to open an additional site on a projection-led basis, and entrepreneurs with employed experience looking to buy a successful business in the same sector.
Allica says that the changes to its RLS-backed commercial mortgage offering comes in direct response to extensive broker feedback received in Q2 2023.
These proposals would have previously sat outside of the bank’s credit appetite and with these changes it is hoped that even more businesses can access commercial finance using the Recovery Loan Scheme.
Allica Bank launched interest-only owner-occupied commercial mortgages using the Recovery Loan Scheme earlier this year.
It is available with a maximum term of five years, with businesses able to access up to £2m (subject to eligibility).
The bank has also expanded its healthcare offering to include children’s day nurseries, which it says is a growing area of the care market, with 90% of operators within Allica’s key established SME market.
David Holdstock, government lending manager at Allica Bank, said: “The expansion of the RLS-backed mortgage is an indication of Allica’s commitment to enabling more businesses to access the funding they need to grow.
“The expansion of the RLS offering provides an excellent opportunity for brokers to support businesses with loans previously outside of our credit appetite, helping unlock funding where it may not have previously been available.
“The Recovery Loan Scheme is available to support all eligible businesses, not only those that are in recovery.
“Brokers are increasingly aware of the challenges that higher interest rates and difficult economic conditions are placing on businesses, and by expanding our offering we are able to support more businesses than ever before.”
Nick Baker, chief commercial officer at Allica Bank, said: “The achievement of hitting £2bn of commercial mortgage offers to broker-introduced businesses shows just how crucial the broker community is to the small business finance ecosystem.
“Brokers have such a crucial role to play in today’s complex economic climate. Higher interest rates and ongoing uncertainty mean that a full view of the lending market is critical for businesses to find the most appropriate finance for them.
“Brokers have and will always be a primary focal point for Allica, as evidenced by us having reached the £2bn milestone of commercial mortgage offers to businesses introduced by our broker partners. I’d like to thank them for their unwavering support!”
