Introduction
Allica Bank has once again stepped up to support UK businesses by announcing significant rate reductions across three key commercial finance products. The bank has lowered rates for commercial mortgages, healthcare finance, and asset finance, reinforcing its commitment to helping established businesses grow and thrive. This move follows a period of remarkable growth for Allica, having lent £3 billion to businesses since its launch.
Why Is This News Relevant?
In a fluctuating financial landscape where borrowing costs have been a significant concern for businesses, Allica Bank’s decision to cut rates comes as welcome news. With inflationary pressures affecting lending rates and businesses seeking affordable financing, these reductions can help SMEs access the capital they need at a more competitive cost.
For brokers and businesses alike, this means improved affordability and better financial planning, particularly in sectors that rely heavily on commercial mortgages and asset finance. Allica Bank’s focus on established SMEs highlights its commitment to fueling business growth in the UK, ensuring that companies can invest in their futures without being burdened by high borrowing costs.
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Breakdown of Allica’s Rate Reductions
Allica’s latest rate reductions include:
- Commercial Mortgages: Owner-occupied mortgage rates are reduced by 0.20% for loans under 60% Loan-to-Value (LTV). Semi-commercial investment and owner-occupied mortgages have seen rate cuts of 0.15% for loans under 70% LTV.
- Healthcare Sector: Experienced care home operators will benefit from a 0.20% rate reduction.
- Asset Finance: A 0.25% rate reduction applies to loans between £150,000 and £2.5 million with terms ranging from 24 to 84 months.
- Additional Discounts: Businesses securing loans above £750,000 or properties with an EPC rating of A-C will enjoy an additional 0.25% discount.
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Industry Comments
Nick Baker, Chief Commercial Officer at Allica Bank, emphasized the importance of these reductions in unlocking the potential of established SMEs.
“There’s a huge amount of untapped potential in the established SME economy, and brokers are well positioned to help their clients realize it. It’s vital that banks play their part in helping them do so, and Allica’s latest batch of rate reductions is designed to unlock that potential.”
Baker also highlighted Allica’s ongoing investments in technology and human-led decision-making.
“It’s not just on price that Allica looks to do this, though. We continue to focus on our proactive and human-led approach, meaning we can look at every application individually on its own merits. While our ongoing investment in our technology is really bearing fruits, freeing up our team to find ways to add value, and giving our brokers greater control over their cases than ever before.”
Frequently Asked Questions (FAQs)
1. Who can benefit from these rate reductions?
Businesses seeking commercial mortgages, asset finance, or healthcare financing, particularly those with loans under 70% LTV or investments in energy-efficient properties, will benefit the most.
2. How do these reductions compare to previous rate cuts?
Allica has made multiple reductions in 2024, showing a consistent effort to make financing more accessible. These latest cuts further build on their commitment to affordable lending.
3. Are there any eligibility criteria for the additional 0.25% discount?
Yes, businesses must secure loans over £750,000 or own properties with an EPC rating of A-C to qualify.
4. How does Allica Bank’s Introducer Portal help brokers?
Allica has been investing in its Introducer Portal, providing brokers with greater control and visibility over loan applications, streamlining the lending process.
Conclusion
Allica Bank’s rate reductions signal a strong commitment to supporting UK businesses in a challenging economic climate. By making borrowing more affordable and enhancing broker support, Allica is empowering SMEs to access capital with greater ease. These changes not only benefit business owners but also reinforce Allica’s position as a trusted financial partner dedicated to long-term business success.
With its blend of competitive pricing, technology-driven processes, and a human-centric approach, Allica Bank continues to shape the financial landscape for SMEs, ensuring that businesses can thrive with the right financial support.
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