October 24, 2025
Lender Comparisons

Allica Bank vs Recognise Bank: Loans & Rates

Compare Allica Bank and Recognise Bank on loans, rates, and services.
Jesse Spence
Finance content writer / Market researcher

This guide compares two specialist UK banks that focus on established SMEs. Allica Bank and Recognise Bank both offer relationship-led lending with real underwriters, not just algorithms. We look at products, costs, timelines and service. If you are weighing a property-backed facility versus a working capital option, this side-by-side review will help you decide.

TL;DR
  • Allica lends from c. £25k–£10m across asset finance, bridging and commercial mortgages; Recognise focuses on bridging and commercial mortgages from £250k.
  • Headline LTVs: Allica up to 80% for owner-occupied commercial mortgages; Recognise up to 70% for both owner-occupied and investment.
  • Speed: Allica targets next‑working‑day decisions in principle; Recognise aims to contact within 24 hours and provide indicative terms in 48 hours.
  • Fees and pricing vary by deal. Allica publishes typical arrangement fees (1.5%–2%). Recognise shows a 9.50% Commercial SVR after fixed periods and bridging from 0.79% per month.
  • Choose Allica for wider product set and Growth Guarantee Scheme asset finance. Choose Recognise for tailored bridging and mid-market commercial property loans.

Products and Terms at a Glance

Allica Bank overview, loan sizes, fees, repayment style, terms, eligibility

Allica serves established SMEs with property-backed lending and equipment funding. Product set includes commercial mortgages from £150,000 to £10 million, with up to 80% LTV for owner-occupied properties and up to 75% for investment properties. Typical terms range from 5 to 25 years. Arrangement fees shown on site are 1.5% for owner-occupied and 2.0% for investment mortgages, with security required and fixed or variable pricing available (see product page for details). Source: Allica commercial mortgages page.

Allica also provides asset finance between £25,000 and £2.5 million, with documentation fee £295 and maximum term up to 7 years. It is approved to offer asset finance under the UK Government’s Growth Guarantee Scheme. Source: Allica asset finance page.

For short-term property opportunities, Allica offers bridging finance (site hub lists the product), generally secured against UK commercial or mixed-use property. Final pricing depends on risk, LTV and exit plan. Product guides and a tariff of fees are linked from the mortgage and asset finance pages.

Eligibility is geared to established UK businesses trading in England, Scotland or Wales, usually with at least two full years of accounts. The bank emphasises relationship management and rapid decisions. In its own guide, Allica says relationship managers aim to turn around a decision in principle by the next working day for commercial mortgage applications. Source: Allica guide to quick decisions on commercial mortgage applications (PDF).

Pros of Allica Bank

  • Wide SME coverage: commercial mortgages, asset finance, and bridging, so you can match facility to need.
  • Competitive LTVs for owner-occupied property (up to 80%).
  • Clear ballpark fees for commercial mortgages (1.5%–2.0%) and published asset finance documentation fee.
  • Growth Guarantee Scheme availability on asset finance can support approvals for eligible SMEs.
  • Decision-in-principle targeted for next working day, helping time-sensitive purchases.

Cons of Allica Bank

  • Minimum sizes from £150k for commercial mortgages and £25k for asset finance exclude very small loans.
  • Most lending is secured and unregulated; personal guarantees and debentures may be required.
  • Full pricing is bespoke, so you will still need a case-by-case quote and valuation.

Recognise Bank overview, loan sizes, fees, repayment style, terms, eligibility

Recognise Bank focuses on property-backed SME lending. The core products are commercial mortgages and bridging loans. For owner-occupied commercial mortgages, the site lists £250,000 to £5 million, up to 70% LTV, terms up to 10 years and repayment terms up to 25 years. For investment mortgages, it lists £250,000 to £7.5 million, up to 70% LTV, terms up to 5 years, and repayment terms up to 25 years. After any fixed-rate period, loans revert to the Commercial Standard Variable Rate, shown as 9.50% at the time of writing. Source: Recognise commercial mortgage page.

Recognise’s bridging loans run from £250,000 to £10 million, up to 75% LTV, with terms to 24 months and pricing “from 79 bps per month,” subject to credit, valuation and exit. Source: Recognise bridging product page.

Eligibility and process are plain-English and quick. The bank aims to contact you within 24 hours of an enquiry and to provide indicative terms within 48 hours, according to its Business Lending FAQs. Those FAQs also set out borrower types it can consider (Ltd, LLP, sole trader, partnerships, PLCs, trusts and SIPPs), minimum trading history (generally 2 years) and geographical scope (UK entities; security in England, Wales or Scotland). Source: Recognise Business Lending FAQs.

Pros of Recognise Bank

  • Strong bridging and mid-market commercial property focus with clear loan sizes and LTVs.
  • Transparent revert rate published for commercial mortgages (Commercial SVR currently 9.50%).
  • Indicative timeline: contact within 24 hours and terms in 48 hours after enquiry.
  • Broad borrower entity types considered, within the UK SME space.

Cons of Recognise Bank

  • Minimum loan size £250k may be high for smaller transactions.
  • Focus is property-led. No standard unsecured term loan option for small ticket working capital.
  • Pricing remains bespoke; arrangement and legal costs apply as usual.

Costs and Repayments in Practice

Both banks price deals individually after credit assessment and valuation. For longer-term property finance, rates may be fixed or variable. Recognise discloses that commercial mortgages revert to its Commercial SVR, currently 9.50%, after the fixed period. For short-term bridging, Recognise signposts pricing from 0.79% per month at low-to-mid LTVs. Allica sets out mortgage arrangement fees of 1.5% (owner-occupied) and 2.0% (investment) and a £295 documentation fee on asset finance. Asset finance can be structured as hire purchase or lease, with fixed monthly repayments and title passing on completion in the case of HP. Sources: Recognise mortgage and FAQs pages; Recognise bridging page; Allica commercial mortgages page; Allica asset finance page.

Headline cost points Allica Bank Recognise Bank
Typical product set Commercial mortgages (£150k–£10m), asset finance (£25k–£2.5m), bridging Commercial mortgages (£250k–£5m owner-occupied; up to £7.5m investment), bridging (£250k–£10m)
Indicative fees Mortgage arrangement fee 1.5%–2.0%; asset finance documentation fee £295; tariff of fees available Arrangement, valuation and legal fees apply; commercial revert rate disclosed (9.50% SVR)
Max LTV (examples) Up to 80% owner-occupied; up to 75% investment (mortgages) Up to 70% mortgages; up to 75% bridging
Repayment style Monthly amortising for mortgages; fixed instalments for asset finance Amortising or interest-only structures for mortgages; monthly interest for bridging with bullet repayment
Speed signals Decision in principle targeted next working day (mortgages) Contact within 24 hours; indicative terms in 48 hours

Worked examples

Assumptions: Examples are for illustration only. Lenders price case by case. Fees, valuation and legal costs are estimated and VAT may apply. Rates shown reflect typical secured lending conditions as of 2025, not offers.

Allica commercial mortgage (owner-occupied) example: A manufacturer borrows £1,000,000 over 20 years at a fixed 7.25% with a 1.5% arrangement fee. Monthly repayment is about £7,915. Total interest over term about £,898, (rounded). Upfront fees: arrangement fee £15,000 plus, say, £3,000 valuation and £2,000 legal. Cash-flow effect: predictable monthly cost, with the option to refinance at maturity or during a break window, subject to early repayment charges where applicable.

Recognise commercial mortgage (investment) example: A property SPV borrows £2,500,000 at 65% LTV on a 5-year term, 25-year repayment profile, fixed at 7.75%. Monthly repayment c. £18,958 during the fixed period. After 5 years, if not refinanced, the rate reverts to the Commercial SVR (shown as 9.50% on the site) unless a new fixed rate is agreed. Arrangement fee assumed 2% (£50,000) plus professional fees. Cash-flow effect: lower monthly cost than full amortisation over 5 years thanks to the 25-year profile, but refinance risk at maturity.

Recognise bridging loan example: £1,000,000 at 60% LTV for 12 months priced at 0.89% per month. Monthly interest £8,900, often rolled up. Total interest about £106,800 if redeemed at month 12, plus arrangement and exit fees. Cash-flow effect: minimal monthly outlay if interest is retained or rolled, but a single bullet repayment from refinance or sale.

Allica asset finance example (hire purchase): £250,000 over 5 years at a flat rate equivalent giving a representative APR of ~10.9% for an established SME with strong affordability. Monthly repayment c. £5,402. Documentation fee £295. Option-to-purchase fee may apply. Cash-flow effect: preserves working capital while the asset generates revenue; possible benefit from full expensing for qualifying assets.

Allica vs Recognise: the SME lending dashboard you can act on today

This dashboard turns the key points of the comparison into eight simple charts. Read each tab left to right: ranges show the likely spread; dots mark typical values where available. Use it to judge rate sensitivity, usable loan size, term trade‑offs, and the time needed to fund. Figures reflect the guide’s disclosed numbers and worked examples for UK SMEs choosing between a property‑backed facility and working capital.

The bars show the mortgage rate range; the dot marks a typical fixed rate from the examples. For Allica we show 7.25% based on the owner‑occupied case study; for Recognise we show 7.75% with a top end at its disclosed 9.50% Commercial SVR after fixed periods. Pricing moves with credit strength, sector risk, security and term. A 1% rate gap on £100,000 over 5 years changes monthly by about £50 and total interest by about £2,900. Prioritise the lower typical when cash flow is tight; tolerate a wider range if your case is strong and you can price it down.

Bars map minimum to maximum for core commercial mortgages. Allica runs c. £150k–£10m, fitting freehold buys, refis and larger capex linked to property. Recognise shows £250k–£5m for owner‑occupied and up to £7.5m for investment; the higher band matters for portfolio moves. Unsecured working capital at small tickets is not a focus for either; Allica covers equipment via asset finance from £25k. Remember affordability and security set the real ceiling, not just the headline max. If aiming high, prepare statements, accounts and a clear repayment case early.

Terms reduce monthly cost as they lengthen, but increase total interest. Allica mortgages run about 5–25 years; Recognise lists up to 10 years for owner‑occupied (with repayment profiles up to 25 years). At £50,000, 3 years vs 6 years at 8% changes monthly to about £1,566 vs £877 and adds roughly £6,800 of interest across the term. Longer terms suit seasonal cash flow and growth plans; shorter terms suit rapid deleveraging. Check early settlement rules before fixing.

Each bar splits the journey: application to decision, then decision to funds (midpoint for property deals). Allica targets a next‑working‑day decision in principle; Recognise aims to contact in 24 hours and give indicative terms in 48 hours. Funding then depends on valuation and legal work, so assume several weeks for mortgages. If payroll is due in 5 days, Recognise’s quicker early signal may help triage; if documents are ready, either can move faster. Fast paths assume clean files, quick signatures and no title snags.

We chart application and late fees where published. Allica shows a £295 documentation fee on asset finance; Recognise lists standard costs but no specific application or late fee on its site pages. Legal and valuation costs are not shown here. £150 fee on a £20,000 loan adds 0.75% to day‑one cost. Compare fees alongside rate and term, not in isolation, and confirm early settlement and exit charges in your offer.

Arrangement fees are calculated on the principal and may be deducted upfront or added to the balance depending on product. Allica publishes 1.5% for owner‑occupied and 2.0% for investment mortgages; Recognise states that arrangement, valuation and legal fees apply but does not publish a typical percentage. Worked example: 1.5% on £250,000 equals £3,750. A lower rate with a higher fee can still be cheaper over long terms, so model both.

The radar uses a simple score: booleans count as 1, integrations count as a number, and UX is on a 1–5 scale. Where features are not published, scores are set to 0 as placeholders. Open banking can speed underwriting; APIs and integrations help multi‑account firms; mobile support helps owners on the move. Busy teams and multi‑entity groups benefit most. Ask your manager to confirm portal features and integration paths before you commit.

Axes split satisfaction: star ratings on the left axis and NPS on the right. Review volume matters; more reviews mean steadier signals. Branch and case experiences vary, so treat scores as directional. Read recent comments and match themes to your needs: speed, documents, portal ease. If reviews are thin, lean on your broker’s live deal feedback.

Speed and Service

Both banks position themselves as relationship-led. Allica highlights “rapid decisions made by real people” and, in its mortgage application guide, targets a next-working-day decision in principle. Recognise sets an expectation to contact within 24 hours of enquiry and issue indicative terms within 48 hours. Timelines from offer to completion still depend on valuation and legal work. For property deals, allow several weeks to months, especially where third-party legal processes and searches are involved. Sources: Allica commercial mortgage page and application guide; Recognise Business Lending FAQs.

Who Each Lender Suits

Typical scenario for Allica Bank

You are an established regional business with two or more years of filed accounts. You want to buy or refinance trading premises and prefer higher LTV options. You may also need equipment funding alongside the property purchase. Allica’s mix of commercial mortgages and asset finance can package the deal. If you need short-term acquisition finance pending a sale or refinance, Allica also markets bridging facilities. For qualifying investments in plant and machinery, the Growth Guarantee Scheme route on asset finance may be available, subject to scheme rules and eligibility. Source: Allica product pages.

Typical scenario for Recognise Bank

You are a professional practice or property investor requiring a quick, tailored property loan in the £500k–£5m range. You might be acquiring a new site for your business or refinancing an investment portfolio. Recognise is well set up for bridging at up to 75% LTV with terms up to 24 months, and for commercial mortgages with clear loan bands and a published revert rate. If you value quick initial feedback and a tight underwriting dialogue, Recognise’s stated 24–48 hour early-stage process is attractive. Sources: Recognise bridging and commercial mortgage pages; Business Lending FAQs.

How to Apply

Application steps and documentation required for each lender.

Allica Bank: Start with a conversation or online enquiry on the relevant product page. For commercial mortgages, Allica advises getting a decision in principle first. The guide lists what you will normally need: basic company information, estimated property value, desired loan and deposit, and then fuller documentation for the full application, such as P&L, balance sheet, bank statements, previous years’ accounts, business plan, and details of directors and ownership. Valuation and legal stages follow. Sources: Allica commercial mortgage page and “Tips and tricks for a quick decision on commercial mortgage applications” PDF.

Recognise Bank: Submit a short online enquiry from the product page. The team aims to call within 24 hours and provide indicative terms within 48 hours. Eligibility in FAQs includes borrower entity types, UK centre of main interest, typically 2 years’ trading, and clean recent track record on secured repayments. Security must be in England, Wales or Scotland. After terms are agreed, expect standard valuation, legal and due diligence processes with fees set out in your facility letter. Source: Recognise Business Lending FAQs and commercial mortgage page.

Final Verdict: Which Lender Fits Your Business Best

Choose Allica Bank if…

  • You want one lender for property, asset finance and short-term bridging.
  • You prefer higher LTVs on owner-occupied commercial mortgages (up to 80%).
  • You value a published fee structure and a next-working-day decision in principle target.
  • Your business can meet the established-SME profile with two years of accounts and strong affordability.

Choose Recognise Bank if…

  • You need a swift view on a property deal in the £250k–£7.5m bracket.
  • You want bridging up to 75% LTV with clear product parameters and monthly pricing.
  • You like the clarity of a disclosed Commercial SVR (9.50%) after fixed periods.
  • Your security is in England, Wales or Scotland and your entity meets the stated eligibility.

Both lenders serve a similar SME niche but with different emphases. Allica offers breadth across property and equipment funding, while Recognise focuses on property and bridging with transparent revert-rate signalling. If you are unsure which route fits best, speak with Funding Agent. We can compare live offers and help you prepare a complete pack. Ready to start? Use our short enquiry form.

Sources

Internal links: Finance concept links in this article follow Funding Agent’s taxonomy for accuracy and consistency.

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