Business Bank Allica Bank has passed a major milestone in the UK’s SME lending market, announcing it has now delivered more than £1 billion in asset finance lending since launching its proposition in 2021.
Allica Bank says demand from brokers has accelerated sharply, with Allica now receiving an average of around 750 broker applications per month. Having reached £500 million in lending by April 2024, it took almost half the time again to double that figure – underlining the pace at which its asset finance division is scaling.
What is asset finance lending?
Asset finance is a type of business borrowing used to purchase or refinance physical or operational assets such as vehicles, machinery, IT equipment, or specialist tools. Instead of paying upfront, a company spreads the cost over time, often with the asset itself acting as security for the loan.
Who are the big lenders in the UK asset finance market?
The UK market is dominated by major banks and specialist providers. The largest players typically include Lloyds Banking Group, Barclays, NatWest, HSBC, and Santander, alongside specialist lenders such as Close Brothers and Aldermore, which are also significant in broker-led finance.
What is meant by asset-based lending?
Asset-based lending is a broader term referring to borrowing secured against business assets. This can include not only equipment or vehicles, but also receivables, stock, or property. The lender bases the loan size primarily on the value of the underlying assets rather than on profitability alone.
Direct lending vs asset-based finance
Direct lending usually refers to a standard loan provided directly to a borrower, often assessed mainly on creditworthiness and cash flow. Asset-based finance, by contrast, is secured specifically against an asset, meaning approval may be quicker or more flexible because the lender has collateral to fall back on.
Allica positions its growth as a result of combining proprietary technology with specialist human expertise, aimed at established SMEs and the intermediaries that support them. Broker feedback appears to be central to its strategy: in a recent survey of more than 500 brokers, 92% rated their experience with Allica as good or excellent.
The bank has expanded its proposition over the past year, including enhanced refinance products and support for luxury and soft assets such as software and restaurant fit-outs, as it works towards building what it calls a “one-stop asset finance shop” for established businesses.
Richard is the founder of the Good Money Guide (formerly Good Broker Guide), one of the original investment comparison sites established in 2015. With a career spanning two decades as a broker, he brings extensive expertise and knowledge to the financial landscape.
Having worked as a broker at Investors Intelligence and a multi-asset derivatives broker at MF Global (Man Financial), Richard has acquired substantial experience in the industry. His career began as a private client stockbroker at Walker Crips and Phillip Securities (now King and Shaxson), following internships on the NYMEX oil trading floor in New York and London IPE in 2001 and 2000.
Richard’s contributions and expertise have been recognized by respected publications such as The Sunday Times, BusinessInsider, Yahoo Finance, BusinessNews.org.uk, Master Investor, Wealth Briefing, iNews, and The FT, among many others.
Under Richard’s leadership, the Good Money Guide has evolved into a valuable destination for comprehensive information and expert guidance, specialising in trading, investment, and currency exchange. His commitment to delivering high-quality insights has solidified the Good Money Guide’s standing as a well-respected resource for both customers and industry colleagues.
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