By Amelia Isaacs on Wednesday 7 September 2022
The SME-focused bank is aiming to increase its committed loan offers by 50 per cent in the last four months of the year.
Between September and the end of the year, Allica Bank is aiming to make £500m in committed loan offers.
The bank is continuing to increase its support for SMEs as costs rise and interest rates remain volatile.
Up until July, Allica’s total lending to SMEs had reached £1bn, and it said it aims to increase this to £3bn by the end of 2025.
“[C]onsidering 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,” Allica Bank chief commercial officer Nick Baker said of the £500m aim.
The bank has also said it has enhanced its commercial investment mortgage proposition off the back of feedback from its broker panel, to give SMEs more choice in a “volatile rate environment”.
This includes extending its offering to include a fixed-rate interest-only repayment option.
Allica is also launching a 10-year fixed-rate mortgage term later this month, with 56 per cent of its broker panel indicating a demand for this in its last survey, according to the bank.
“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,” Baker added.
“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.”