Allica Bank has announced a significant expansion of its soft asset finance services, a move designed to provide greater flexibility and support for brokers and their clients, particularly established UK businesses.
The challenger bank has broadened its portfolio of financeable soft assets to include a diverse range of items previously considered non-standard. The newly eligible assets include restaurant and office fit-outs, specialized software, park homes, holiday pods, and air conditioning systems. This initiative builds upon Allica’s existing support for financing traditional assets such as IT and office equipment, scaffolding, security systems, and gym equipment.
This strategic expansion is a direct response to recent market feedback, including a survey that highlighted a strong demand from mature businesses for more flexible funding solutions to fuel growth and manage operational needs. Demonstrating the immediate implementation of this new policy, Allica Bank confirmed it has already completed a deal to finance a new paddle court for an established operator.
In a complementary move to stimulate larger investments, Allica Bank has also introduced a temporary rate reduction for hard asset financing. A rate cut of 0.35% is being offered for all hard asset deals valued over £150,000. This promotional rate is available until the end of October 2025, providing a timely incentive for businesses planning significant capital expenditures.
Brandon Hall, Head of Asset Finance Sales at Allica Bank, emphasized the importance of listening to the market. « It is important that we listen to the brokers that are supporting established businesses, » he stated. « They see firsthand what their clients need, and by broadening our support for soft assets, it will make it easier for established businesses to say yes to more opportunities and invest with confidence. »
Hall also commented on the challenging lending environment, noting, « Business owners are fighting an uphill battle… with the UK now having the lowest lending rates in the G7. At Allica, we want to help to fix that, which means keeping broker deals moving and giving established businesses access to finance where it matters most.”
Separately, the bank continues to invest in its brand presence, recently announcing a sponsorship deal with young racing driver Daniella Sutton. The partnership, which names Allica Bank as her official banking partner, will run until the end of 2026.
