October 30, 2025

Lender Comparisons

OakNorth Vs Allica Bank: Loan & Savings Comparison

Compare OakNorth and Allica Bank for loans and savings, focusing on rates, eligibility, and customer service.

James Laden

Co-founder and CEO

Choosing the right specialist lender is critical. This guide puts two of the UK's leading SME lenders in a head-to-head comparison: OakNorth and Allica Bank. We cut straight to the chase for SME owners and finance leads weighing a major property-backed facility against a significant growth loan.

We dissect their core products, real-world costs, and decision speeds to map out where each lender truly shines. This analysis is built on public data and industry sources; where figures are private, we use conservative, flagged assumptions to paint the clearest possible picture.

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TL;DR

OakNorth focuses on larger, bespoke deals, typically from £1 million, with quick decisions and tailored structures.
Allica offers a broad SME toolkit: commercial mortgages, asset finance, growth finance and bridging with clear fee cards.
Both are relationship-led and fast compared with high street norms. Allica publishes detailed product guides and fees; OakNorth publishes high-level criteria.
Choose OakNorth for complex, mid-market transactions and development or acquisition funding. Choose Allica for day-to-day SME borrowing including asset purchases and property finance from £150,000.
Costs vary by risk. Expect arrangement, valuation and legal fees with both. Check DSCR, LTV and early repayment terms before you commit.

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OakNorth vs Allica – the numbers that steer today’s decision

This dashboard turns the blog’s findings into eight quick charts. Each bar shows a range where relevant and a dot marks a typical point. Read left to right to compare price, size, term, speed, and extras that change real cost. It helps a UK SME pick a lender that fits risk, security and timing today. Use the notes under each chart to decide what to check and what to ask for in heads of terms.

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Bars show the min to max interest range by lender. The dot marks a typical price point based on current examples in the blog. Pricing moves with credit, sector risk, security, and term. A 1% rate gap on £100,000 over 5 years changes monthly by about £0 and total interest by about £0. Prioritise the lower typical when cash is tight and repayments must be smooth. A wider range matters when your case sits outside the usual box and needs flexible structuring.

Bars show the headline lending window from minimum to maximum. Allica spans £150k to £10m across products. OakNorth starts at £1m and can stretch to tens of millions for secured bespoke deals, so the max shown is an estimate to aid scale. Unsecured ceilings are lower and case by case. Map the range to purpose: fit-out and stock at the lower end, capex, acquisitions and property at the upper end. Affordability and security set your usable ceiling, not just the headline max.

Bars show typical term ranges. Longer terms cut monthly cost but raise total interest. At £50,000, 3 years vs 6 years at a representative rate changes the monthly to about £0 vs £0 and adds roughly £0 of extra interest over the longer path. Choose longer when cash flow is seasonal or growth needs headroom. Choose shorter when margins are strong and you want the debt cleared faster.

Bars show midpoints for two stages: application to decision, and decision to funds. The dot marks the fastest path seen for clean files. Deals slow when documents are missing, bank statements need review, valuations drag, or security is complex. If payroll is due in 5 days, the faster path of the quicker lender is safer. Fast paths assume tidy accounts, quick signatures, and no surprises in diligence.

This chart captures application or commitment fees and any published late fees only. It excludes legal, valuation and monitoring which can be material on property deals. A £150 fee on a £20,000 loan adds 0.75% to day-one cost. Compare fees alongside rate and term because a higher fee with a lower rate can still win on total cost. Ask for a full fee list up front and confirm early settlement rules.

Bars show arrangement fees as a percentage of the principal. Fees are usually deducted on day one for bridging, or added to the balance or paid at completion on term facilities. For example, 1.5% on £250,000 equals £3,750. A lower rate with a slightly higher fee may be cheaper over long terms, so model the total. Always match fee timing to your cash flow.

Scores are built from features: booleans count as 1, integrations are counted, and user experience is scored 1 to 5. Open banking can speed underwriting by reducing back-and-forth on bank statements. Integrations and APIs help multi-account and fast-scaling firms automate reconciliations. A solid portal and mobile access support on-the-go approvals. Busy owners and multi-entity groups benefit most.

Bars on the left axis show Trustpilot and Google star ratings. The line on the right axis shows NPS where available. Treat higher review counts as a stronger signal than small samples. Branch and case experiences vary, so match review themes to your needs, such as speed, document demands, and portal ease. Read the most recent reviews before committing.

Products and Terms at a Glance

OakNorth overview, loan sizes, fees, repayment style, terms, eligibility

OakNorth provides bespoke term loans and property-backed facilities for established SMEs. The published minimum is £1 million for business loans, with facilities up to “tens of millions”. OakNorth states decisions and funding can complete in days or weeks. Eligibility focuses on businesses trading at least two years, with a positive balance sheet, profitability and turnover above £1 million. Sources: OakNorth business loans and application pages.

Loan sizes: from £1,000,000, rising to multi‑million bespoke deals. Property development finance examples cite up to 55% GDV.
Products: secured and unsecured business loans (case by case), bridging loans, development finance, property investment loans, acquisition/MBO finance, and revolving credit facilities.
Repayment styles: amortising or non‑amortising (interest‑only) depending on purpose and risk. Property development finance often draws in stages with interest payable only on funds used.
Fees: OakNorth does not publish a single tariff. Typical costs include arrangement, valuation, monitoring and legal fees. For development finance, exit and non‑utilisation fees can apply.
Eligibility: established, profitable businesses trading 2+ years with turnover generally over £1m; sector specialists across care, real estate, hospitality and more.
Evidence: OakNorth Business loans, Apply page, Development finance guide, Bridging guide.

Pros of OakNorth

Designed for larger, complex transactions with bespoke structuring.
Fast decisioning with direct access to credit decision‑makers on bigger deals.
Property development experience; guidance around GDV and staged drawdowns.
Can accommodate interest‑only or amortising profiles.

Cons of OakNorth

High minimum loan size (£1m) puts it beyond many smaller SMEs.
Pricing not published; you negotiate case by case.
Likely to require security and personal guarantees for most facilities.

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

Allica focuses on established SMEs with relationship managers across the UK. It offers commercial mortgages (typically £150,000 to £10 million), asset finance (£25,000 to £2.5 million, up to seven years), growth finance term loans (£1 million to £10 million over three to six years) and bridging finance (£150,000 to £10 million). Allica publishes detailed commercial mortgage and bridging product guides including fees, LTVs and DSCR benchmarks. A deposit of around 30% is typical for a commercial mortgage.

Loan sizes: mortgages £150k–£10m; asset finance £25k–£2.5m; growth finance £1m–£10m; bridging £150k–£10m.
Repayment styles: capital and interest, partially amortising, or interest‑only (where appropriate). Asset finance fixed‑term with documentation fee.
Fees: commercial mortgage arrangement fee typically 2% (1.5% owner‑occupied), commitment fee £500 refundable at completion, early repayment charges on fixed and variable products as published. Bridging arrangement fee 2% and exit fee commonly 1% for sale‑exit cases.
Eligibility: UK entities trading 2+ years; sector variations for hotels, care and nurseries. Growth finance targeted at established B2B firms.
Evidence: Allica Commercial mortgages, Asset finance, Growth finance guide (PDF), Bridging, Commercial mortgages product guide (PDF), Commercial mortgage blog.

Pros of Allica Bank

Clear product guides and tariffs to benchmark costs.
Relationship‑led service with regional managers.
Range spans property, assets and working capital style needs via term or revolving structures.
Bridging available with published LTVs, fees and a fast‑track process.

Cons of Allica Bank

Some products target larger, established firms; micro‑SMEs may not qualify.
Variable rates link to Bank of England base rate; repayment costs can move.
Personal guarantees and debentures are common, especially at higher LTVs.

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Costs and Repayments in Practice

Both lenders price to risk. Mortgages and growth loans are usually a margin over Bank of England base rate or fixed for a period. Bridging and development facilities often price monthly. Expect arrangement, valuation and legal fees across the board. Allica publishes detailed fees and DSCR guidance in its product guides. OakNorth lists typical development finance costs such as arrangement, monitoring and exit fees.

Headline cost item	OakNorth (indicative)	Allica Bank (published where available)
Arrangement fee	Not published; typically charged on bespoke loans (assumption based on market norms and OakNorth development finance list).	Commercial mortgages: 2% (1.5% owner‑occupied). Bridging: 2%.
Exit / early repayment	May apply on development or bridging facilities (e.g. exit fees). Terms agreed case by case.	Fixed mortgage ERCs step down 5% to 1% over five years; variable ERC 3% for five years. Bridging exit fee often 1% on sale‑exit cases; none on some refinance exits.
LTV / leverage guide	Development finance typically up to 55% GDV. Bridging guide references 50–60% LTV examples.	Commercial mortgages commonly up to 70% LTV depending on asset type; bridging max day‑one up to 75% with product‑specific limits.
Other fees	Valuation, monitoring, legal; potential non‑utilisation on development lines.	Commitment fee £500 (refunded at completion) on mortgages; asset finance documentation fee £295.

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Assumptions: where a lender does not publish a specific fee, we reference typical UK SME market practice and OakNorth’s list of expected development finance costs. Always confirm your own heads of terms.

Worked example – OakNorth bridging (illustrative)
A £2,000,000 bridge for 12 months at a nominal 10% per annum, interest‑only. Arrangement fee 2%. Exit fee 1%. Monthly interest is £16,666.67. Total interest over 12 months is £200,000. Fees total £60,000. Total repayable would be £2,260,000 plus any third‑party costs. This assumes a maximum LTV of around 55–60% against the asset.

Worked example – Allica commercial mortgage (illustrative)
A £750,000 owner‑occupied mortgage at 8.5% APR over 15 years. Monthly repayment is about £7,385.55. Total repayable over the term is about £1,329,398, with interest of about £579,398, plus fees (arrangement 1.5% and third‑party costs). If fixed, ERCs would apply if you repay early. Figures are purely illustrative; Allica publishes DSCR and fixed/variable pricing guidance in its product guide.

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Speed and Service

OakNorth highlights fast decisions and funding within days or weeks rather than months. On larger facilities, borrowers may be invited to meet the credit committee. For property development, OakNorth emphasises staged drawdowns and transparency across the process.

Allica’s model is relationship‑led. Its commercial mortgage and bridging guides set clear criteria, with a published fast‑track process on bridging (term sheet within hours, AVMs where suitable). Growth finance materials stress direct access to decision‑makers and moving at pace. In practice, complex property transactions still depend on valuation and legal timelines.

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Who Each Lender Suits

Typical scenario for OakNorth

Mid‑market SME seeking £1m–£10m+ for an acquisition, MBO or major capex via a bespoke term loan.
Property developer needing development finance with staged drawdowns up to c. 55% GDV, and options for a short bridging loan during planning.
Portfolio investor seeking commercial mortgages at scale, or revolving credit to smooth project cash flow.

Typical scenario for Allica Bank

SME buying premises with a deposit of ~30% and borrowing £150k–£2m on a five to twenty‑five year commercial mortgage.
Manufacturer or haulier financing equipment or vehicles £25k–£2.5m via asset finance, targeting steady monthly repayments.
Established B2B firm borrowing £1m–£10m for expansion using a fixed‑term growth term loan, or a structured facility with a revolving credit element.
Property investor using short‑term bridging to acquire and refurbish, before refinance or sale.

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How to Apply

Application steps and documentation required for each lender

OakNorth Start by outlining the facility need and the security position. OakNorth’s application flow asks that your business has traded for 2+ years, is profitable with a positive balance sheet and turnover above £1m. For property development, prepare site details, projected costs, GDV, build schedule and exit plan. Expect to provide last two years’ accounts, management information, bank statements, a business plan and, where relevant, tenancy schedules and valuations. OakNorth indicates you can receive quick yes/no decisions and funding in weeks, subject to diligence and legals.

Allica Bank For commercial mortgages, Allica sets out a clear checklist: company details, directors/shareholders, property address and value, product structure, affordability (turnover, adjusted profit or rent), and deposit source. You will typically need two years’ accounts, recent bank statements, tax returns of owners, an ALIE statement and a property schedule. A Decision in Principle may be requested by vendors. For bridging, Allica’s fast‑track path includes quick term sheets and use of AVMs or desktop valuations where appropriate.

For asset purchases, start with an asset finance quote and be ready with supplier invoices, asset spec and expected useful life. For working capital needs, consider working capital loans or a revolving credit facility to manage seasonal cash flow. If your cash is tied up in receivables, invoice finance can help unlock funds without taking on long‑term debt.

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Final Verdict: Which Lender Fits Your Business Best

Choose OakNorth if…

You need £1m+ with a bespoke structure and direct dialogue with decision‑makers.
Your requirement involves development finance, acquisitions or complex property projects.
You value speed with tailored covenants, and are comfortable negotiating case‑by‑case pricing.
Your business has 2+ years of trading, profitability and strong collateral or cash flow.

Choose Allica Bank if…

You want published criteria and fee structures across mortgages, bridging and asset finance.
You need £150k–£2.5m for equipment or vehicles, or £150k–£10m for property.
You prefer a relationship manager and a fast, transparent process.
You have ~30% deposit for a commercial property or need short‑term bridging before refinance.

Both lenders serve established SMEs well. OakNorth suits mid‑market, bespoke transactions. Allica covers a wider range of everyday SME borrowing with clear pricing guides. If you want help comparing heads of terms, covenants and covenanted ratios, speak to Funding Agent or send a quick brief via our enquiry form. We will benchmark lenders, products and total cost of capital for your business.

Sources

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Table of Contents

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Example H3

FAQs

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