Allica Bank reaches £100m in SME asset finance funding and targets further growth

The bank said there had been a “significant increase in demand”, with £78m of asset finance funding being issued this year.

Allica said it was aiming to double its £100m asset finance loan book by the end of the year.

It added that it had increased its asset finance team by 50 per cent and hired business development managers across the UK.

The bank continued to say it had worked closely with the broker community to help the funding reach SMEs.

Asset finance is used by companies to buy equipment and tools. A set amount is paid each month to pay off the value until it is eventually fully owned by the SME. The lender can loan up to £1m in asset finance.

Brandon Hall, head of sales for asset finance at Allica, said: “Despite all the challenges of a post-pandemic, high-inflation world, established small and medium-sized businesses in the UK still have an insatiable appetite for funding to grow.

“It’s incredible to have been a part of so many individual journeys, from helping our customers improve their efficiency with new machinery, to transforming how they move around with electric fleets. We have high hopes for the future of business in the UK and we’re excited to be a part of it.”

He thanked its broker partners, who he said had provided an “invaluable service” to SMEs by helping them find the right funder and finance to help their growth plans. He added that broker support since its launch had been a “key part of our own growth”.