October 30, 2025
Lender Comparisons

Shawbrook vs Aldermore: Loan and Mortgage Comparison

Compare Shawbrook and Aldermore for mortgages, loans, and savings. Find out which offers better rates, flexible terms, and faster services.
James Laden
Co-founder and CEO

Shawbrook vs Aldermore: Which Lender Is Right for Your UK Business?

This guide helps UK SMEs compare Shawbrook and Aldermore. It focuses on products, costs, speed, and suitability. It is useful if you are choosing between unsecured loans, asset finance, invoice funding, or commercial mortgages. The market has moved in 2024–2025, so terms and service levels matter more than ever.

TL;DR
  • Shawbrook stands out for fast unsecured term loans with same day payouts on approval.
  • Aldermore leads on invoice finance and structured asset based solutions with advances up to 90% of invoices.
  • For property-backed borrowing, both offer commercial mortgages, but criteria and sizes differ.
  • Pricing is bespoke at both lenders. Expect fixed repayments on loans and variable discount fees on invoice finance.
  • Pick based on how you use funds, not just the headline rate. Cash flow fit is critical.

‍

Shawbrook vs Aldermore: a quick lender dashboard for UK SMEs

This dashboard turns the comparison into clear bar charts. Each tab shows the metrics that matter today and how to read them. Bars plot min, typical, and max where relevant so you see spread and centre at a glance. Use this to decide if a fixed unsecured loan from Shawbrook or a ledger backed line from Aldermore fits your cash flow, security, and timing.

‍

Bars show each lender’s min, typical, and max rate. Pricing moves with credit quality, sector risk, security, and term. A 1% rate gap on £100,000 over 5 years changes the monthly by about £49 and total interest by about £2,932. Prioritise the lower typical if your file is clean and time is short. Prefer a wider range if your case is nuanced and appetite matters.

Shawbrook’s unsecured ceiling is £25k to £250k. Aldermore’s line is tied to your ledger. At 90% advance and about 45 days in debtors, £750k turnover supports roughly £83k in use, while £5m supports about £555k. Use lower bands for fit out, stock, or tax. Use upper bands for capex or bigger order books. Affordability and security drive usable headroom, not just headline max.

Longer terms reduce the monthly but increase total interest. At £50,000, 3 years vs 6 years at 12% moves the monthly to about £1,661 vs £978 and adds roughly £10,595 interest. Shawbrook amortises over 1 to 5 years. Aldermore’s facility is revolving. The 1 to 3 year band shown is a typical contract period, not repayment of a fixed balance. Choose longer terms for seasonal cash flow or growth plans.

Bars split the journey. Application to decision. Decision to funds. A third bar shows the fastest case. Shawbrook’s unsecured path can be same day once approved and signed. Aldermore’s onboarding takes days, then invoice draws are usually within 1 day. If payroll is due in 5 days, Shawbrook’s faster path is safer unless your invoice facility is already live. Delays come from document checks, bank statements, and any security.

We capture application and late fees here. Legal, valuation, and audit costs are not shown. Shawbrook lists a £200 acceptance or documentation fee. Aldermore’s model uses a service fee and a discount rate rather than an application fee. Impact matters. A £150 fee on a £20,000 loan adds 0.75% to day one cost. Compare fees with rate and term, not in isolation. Check early settlement rules before you sign.

Arrangement fees are calculated on the principal. Some products deduct them upfront. Others add them to the balance. Worked example. 1.5% on £250,000 equals £3,750. A lower rate with a higher fee can still be cheaper over long terms. If the fee is added to balance, you also pay interest on that amount. Ask for a full cost breakdown.

Scoring is simple. Booleans equal 1. Integrations are counted. UX is a 1 to 5 scale. Open banking speeds underwriting. APIs help multi account firms. Mobile and portals support approvals on the go. Busy owners and groups benefit most. Gather statements early to keep the flow fast.

Axes show stars on the left and NPS on the right. Bars use snapshot placeholders so the chart renders. Review volume affects stability. Branch and case experiences vary. Read recent reviews and match themes to your needs. Look for comments on speed, document asks, and portal ease.

‍

Products and Terms at a Glance

We link common finance types to Funding Agent explainers for quick context.

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

Shawbrook lends to established SMEs. Core products include unsecured business loans, asset finance, and commercial mortgages. Unsecured business loans are typically from £25,000 to £250,000 with fixed monthly repayments over 1 to 5 years. Shawbrook lists a £200 documentation or acceptance fee and notes same day payouts once approved and information is received by midday. Personal guarantees usually apply for unsecured loans. Commercial mortgages for trading or investment property range roughly from £150,000 up to multi‑million, with fixed or variable options and terms up to 25 years. Asset based lending is also available for larger transactions.

  • Unsecured loans: £25k–£250k, fixed terms 1–5 years, £200 acceptance/documentation fee, fixed monthly repayments, early overpayments allowed, same day payout on approval and cut-off, PGs required. (Source: Shawbrook unsecured business loans pages and broker materials.)
  • Asset finance: tailored hire purchase and leasing options to spread asset costs and preserve cash lines. (Source: Shawbrook asset finance pages.)
  • Commercial mortgages: rates from c. 6.39% headline, loans from c. £150k to £35m, up to 75% LTV, terms 3–25 years including interest-only options where affordable. (Source: Shawbrook commercial mortgages page.)
  • Eligibility: trading UK SME with clear loan purpose, affordability, and directors willing to give PGs on unsecured loans; property security and DSCR tests on mortgages.

Pros of Shawbrook

  • Fast process on unsecured loans with assisted auto-decisioning and potential same day payout.
  • Clear, fixed repayment profile on term loans, useful for budgeting.
  • Wide property finance range for growth, refinance, or acquisitions.
  • Asset based lending option for larger, multi-asset facilities.

Cons of Shawbrook

  • Unsecured maximum facility of £250k is smaller than some banks’ secured offerings.
  • Personal guarantees expected on unsecured borrowing.
  • Headline mortgage rates and fees fluctuate with markets. Not all sectors or property types will fit criteria.

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

Aldermore is strong in working capital and structured finance. Core products include invoice finance, asset finance, and commercial mortgages. Invoice finance can advance up to 90% of invoice value, with the balance released on collection less fees. Facilities can be set up as confidential invoice discounting or full service factoring. Commercial mortgage criteria, LTVs, and DSCRs are published for intermediaries. Asset finance covers vehicles, plant and machinery, and sector-specific kit.

  • Invoice finance: up to 90% advance, with funds typically available within 24 hours of submitting invoices. Minimum annual turnover around £750,000 for new facilities. (Sources: Aldermore invoice finance pages and PDFs.)
  • Asset finance: HP, lease and sector solutions to spread capex with flexible payments. (Source: Aldermore asset finance pages.)
  • Commercial mortgages: common LTV caps around 70% for capital-and-interest, with DSCR tests; terms up to c. 20 years. Minimum and maximum loan sizes vary by channel. (Sources: Aldermore commercial mortgage criteria and intermediary pages.)
  • Eligibility: UK trading SME, suitable debtor book for invoice finance, directors and owners subject to KYC/CDD. For invoice finance through the Growth Guarantee Scheme, group turnover up to £45m.

Pros of Aldermore

  • Strong invoice finance proposition with high advance rates and fast drawdown.
  • Choice between confidential discounting and full-service factoring.
  • Structured solutions and asset based lending for larger needs.
  • Clear intermediary criteria for commercial mortgages and property-backed deals.

Cons of Aldermore

  • Invoice finance usually requires a minimum turnover, often around £750k.
  • Facility pricing can be complex, combining a service fee and a discount rate.
  • Commercial mortgages may carry tighter LTVs for certain property types such as offices.

‍

Costs and Repayments in Practice

Pricing is bespoke for both lenders. Unsecured and asset loans usually have a fixed interest rate with a set term. Invoice finance uses a variable discount margin and a service fee. Commercial mortgages use fixed or variable rates with arrangement and legal costs. Always compare the total cost, any acceptance or documentation fees, and the cash flow impact on your business.

Feature Shawbrook unsecured loan Aldermore invoice finance
Facility size £25k–£250k typical Linked to sales ledger; advance up to 90% of eligible invoices
Funding speed Same day payout on approval and cut-off Funds typically available within 24 hours of invoice upload
Pricing model Fixed interest rate plus a £200 acceptance/documentation fee Service fee plus discount rate charged on funds advanced until debtor pays
Repayments Fixed monthly repayments over 1–5 years Revolving. Balance clears as customers pay; remaining 10% released less fees
Security Personal guarantees expected. Unsecured over trading business Debenture over receivables. Options for bad debt protection

‍

Worked example: Shawbrook unsecured term loan

Assumptions for illustration only. You borrow £50,000 over 36 months at a fixed 12% per annum. Monthly repayment is about £1,661. Total of repayments is about £59,981. Add a £200 acceptance fee. Total cost is about £10,181. Your cash flow impact is a steady ~£1,661 per month. Early repayments can reduce interest, subject to terms.

This example is indicative and not a quote. Shawbrook prices each case on status and affordability.

Worked example: Aldermore invoice finance

Assumptions for illustration only. You raise a £50,000 invoice on 30 day terms that actually pays in 45 days. Aldermore advances 90% (£45,000) within 24 hours. Service fee 1.5% of invoice value (£750). Discount rate 8% per annum on funds in use for 45 days (about £445). When your customer pays, Aldermore releases the remaining 10% (£5,000) less fees (£1,195). You receive about £3,805 in the final release. Total cash received is about £48,805. Effective cost is around £1,195 for 45 days. If debtors pay faster, the cost falls.

Actual advance rates, fees, and eligibility vary by sector, concentration, and debtor quality.

‍

Speed and Service

Shawbrook combines digital decisioning with human underwriting. Unsecured loans advertise assisted auto-decisioning and same day payouts once approved and information is in by midday. Asset and property deals follow normal valuation and legal steps, so timelines are longer.

Aldermore’s invoice finance is designed for fast working capital. It highlights up to 90% advances, with funds typically available within 24 hours of submitting invoices. Asset finance and commercial mortgages go through credit, CDD, valuation, and legals. Intermediary criteria sheets make timelines predictable once documents are complete.

Who Each Lender Suits

Typical scenario for Shawbrook

You need a swift, fixed-payment loan for fit-out, equipment, or tax liabilities. You want term loan clarity and can provide a personal guarantee. Your business has stable cash flow and you value speed. For larger events such as acquisitions, you may look at Shawbrook’s asset based lending or property-backed options.

Typical scenario for Aldermore

You invoice other businesses on credit terms and cash flow is tight. Your annual turnover is £750,000 or more. You prefer ongoing working capital tied to sales rather than a lump sum. Invoice finance with Aldermore fits, with the choice of confidential discounting or full-service factoring. If you need equipment, Aldermore’s asset finance helps spread costs. For property-backed needs, look at their commercial mortgages.

‍

How to Apply

Application steps and documentation required for each lender

Shawbrook unsecured loan. Step 1: check eligibility and loan purpose. Step 2: submit an application with recent business bank statements, filed accounts or management information, and ID for directors. Step 3: credit assessment with assisted auto-decisioning. Step 4: e‑sign the agreement and pay the £200 acceptance/documentation fee within the first repayment. Step 5: payout is possible the same day once conditions are met and cut-off is met. Personal guarantees are expected.

Aldermore invoice finance. Step 1: discovery call to map your ledger, debtors, and concentration. Step 2: provide management accounts, aged debtors, and sample invoices. Step 3: KYC/Customer Due Diligence for owners and directors, including certified ID and proof of address. Step 4: facility offer with service fee, discount margin, and advance rate. Step 5: onboarding and portal access. You upload invoices and can receive up to 90% within 24 hours.

For property-backed loans at either lender, expect valuations, legal work, and security documents. Timelines depend on conveyancing and searches.

‍

Final Verdict: Which Lender Fits Your Business Best

Choose Shawbrook if…

  • You want a quick decision and fixed repayments on an unsecured business loan.
  • You prefer a lender with strong options for commercial mortgages if you later move to secured borrowing.
  • Your requirement is £25k–£250k and timing is critical.
  • You can support a personal guarantee and show affordability.

Choose Aldermore if…

  • Your main need is invoice finance to unlock cash tied in debtors.
  • You want choice between confidential discounting and full-service factoring with up to 90% advances.
  • You meet turnover thresholds and can provide debtor information quickly.
  • You also plan to use asset finance or property facilities within one banking relationship.

Both lenders are credible choices. Pick the structure that best matches your cash cycle and security. If you want help mapping the options and preparing documents, speak to Funding Agent or start an application via our enquiry form.

Sources

Assumptions: Where lenders do not publish a specific APR or fee table, we use realistic SME examples to illustrate cash flow impact. Always obtain a personalised quote.

‍

Table of Contents
Example H2
Example H3

Let’s launch your project?

arrow button

FAQs

Which lender offers lower mortgage rates, Shawbrook or Aldermore?
Can I apply for a Shawbrook loan if I've been rejected by Aldermore?
Who has lower personal loan fees, Shawbrook or Aldermore?
How long does Shawbrook take to process applications compared to Aldermore?
Which lender offers better customer service, Shawbrook or Aldermore?
What unique features distinguish Shawbrook from Aldermore?

Get Funding For
Your Business

Generate offers
Cta image