Allica Bank business banking review
Allica Bank is a UK-based challenger bank specialising in business banking, commercial lending, and savings accounts. It primarily serves established small and medium-sized enterprises (SMEs), offering personalised financial solutions and a mix of digital and relationship banking.
Key features of Allica Bank
1. Business current accounts
- Designed for SMEs: Tailored accounts with features suited for growing businesses.
- Fee-free digital transactions: No charges for standard online payments.
- Integration with accounting software: Compatible with Xero, QuickBooks, and Sage.
2. Business savings accounts
- Fixed-term deposit accounts: Competitive interest rates with terms ranging from 6 months to 5 years.
- No hidden fees: Transparent rates with FSCS protection up to £85,000.
- Business notice accounts: Higher returns with withdrawal notice periods.
3. Business lending solutions
- Commercial mortgages: Loans from £150,000 to £10 million for property purchases and refinancing.
- Asset finance: Funding for essential business equipment and vehicles.
- Working capital loans: Short-term loans to support cash flow management.
4. Relationship banking model
- Dedicated relationship managers: Each business customer gets a personalised banking experience.
- Hybrid approach: Combines digital banking with hands-on support.
5. Digital banking platform
- User-friendly online banking: Designed for SMEs needing efficient financial management.
- Mobile app support: Secure banking on the go with key account features.
- Real-time transaction tracking: Provides visibility on spending and payments.
Allica Bank fees and pricing
1. Business current accounts
- No monthly account fee for standard banking services.
- No fees on UK online payments.
- Cash deposit fees may apply for businesses needing branch-based transactions.
2. Business savings accounts
- No maintenance fees.
- Competitive interest rates for fixed-term and notice accounts.
3. Business lending fees
- Commercial mortgages: Interest rates depend on the loan amount and risk profile.
- Asset finance: Tailored pricing based on the type of asset and finance term.
- Working capital loans: Fees based on loan size and repayment terms.
Pros and cons of Allica Bank
Pros
- Business-focused banking with tailored SME solutions.
- Competitive savings rates with FSCS protection.
- Dedicated relationship managers for personalised support.
- No monthly fees on business current accounts.
- Flexible commercial lending options.
Cons
- No personal banking services, as it is solely business-focused.
- No high street branches, limiting in-person banking options.
- Limited international banking services, with a primary focus on UK businesses.
How Allica Bank compares to competitors
| Feature | Allica Bank | Starling Bank | Metro Bank | HSBC Business |
|---|---|---|---|---|
| Business current accounts | Yes | Yes | Yes | Yes |
| Business savings | Yes | No | Yes | Yes |
| Business lending | Yes | No | Yes | Yes |
| Relationship manager | Yes | No | No | Yes |
| FSCS protection | Yes (£85,000) | Yes (£85,000) | Yes (£85,000) | Yes (£85,000) |
| Ideal for | SMEs, property investors | SMEs, freelancers | SMEs needing branches | Large businesses, SMEs |
Who should use Allica Bank?
- Established SMEs: Businesses needing tailored banking solutions and commercial finance.
- Companies requiring commercial mortgages: Offers flexible lending for property acquisitions.
- SMEs looking for competitive savings: Provides high-yield savings accounts with FSCS protection.
- Businesses preferring a hybrid banking model: Combines digital services with human support.
Our verdict
Allica Bank is a specialist challenger bank for SMEs, offering a unique combination of business current accounts, high-yield savings, and commercial lending solutions. Its relationship banking model and competitive business finance options make it a strong choice for UK-based companies looking for tailored support.
While it lacks personal banking services and a branch network, it excels in providing digital-first solutions with dedicated account management. For SMEs in need of commercial lending, savings, and hands-on support, Allica Bank is a valuable alternative to traditional high-street banks.