Allica Bank sets new £500m target in SME committed loan offers

Earlier this year, Allica Bank disclosed that its total lending to SMEs had reached £1bn and that it intended to increase this figure twice-fold by the end of 2025. Allica Bank also revealed that it planned to tackle the high-street with an ambitious launch of a rate discount for energy efficient properties (EPC rating of A-C).

Following that announcement, Allica Bank has now pledged a new £500m committed loan offer target as part of its continued support of UK SMEs facing rising costs and volatile interest rates. If successful, Allica Bank will achieve the same amount of committed loan offers in the final four months of the year as it did in the first eight months of 2022.

The news comes as the bank reveals it has enhanced its commercial investment mortgage proposition following feedback from its broker panel to give SMEs greater choice in a volatile rate environment. These enhancements include extending its commercial investment mortgage offering to also supply a fixed-rate interest-only repayment profile.

Additionally, Allica Bank will also be launching a ten-year fixed-rate mortgage term later this month, which the bank has claimed 56% of its broker panel made clear was in demand following its last broker survey. This survey received 143 responses.

Following this announcement, Nick Baker, Allica Bank chief commercial officer, has commented:

“With energy prices rising quickly and the Bank of England continuing to increase the Base Rate, commercial property investors and business owners are looking for ways to fix or manage their costs. We hope that these new additions to our mortgage proposition will give brokers and their clients more opportunities to do that, along with the support of Allica’s award-winning business development manager team.

“We’ve set ourselves an ambitious goal to achieve a further £500 million of committed loan offers between September and the end of the year. But considering Allica’s significant growth in recent months, the strengthening of our team and systems behind the scenes, and the unwavering support of our broker community, I am confident we’ll be able to achieve it.”