Allica Bank breaks through £100m in committed loan offers since June

Allica Bank has issued over £100m in committed loan offers since June to SMEs across the UK.

The bank has made over £250m of approvals in principle so far in 2020, with nearly £200m of this figure since June.

The lender has received well over £1bn of SME lending enquiries since the end of the national lockdown, with significant demand from established SMEs seeking regular finance outside the government’s Covid-19 lending schemes.

Allica has secured more than £100m in deposits over the last six months, and is now averaging over £25m per month in committed loan offers to established SMEs.

According to the bank’s latest survey, 64% of UK SME finance brokers have seen a significant reduction in the supply of business lending  since the onset of the Covid-19 pandemic. 

The study also showed that 99% of brokers see declining lending appetite as the biggest challenge in the SME market over the next two years.

Richard Davies, chief executive officer at Allica Bank, said: “The focus for government and mainstream banks has understandably been on providing support to those businesses most at risk from the impact of Covid-19. 
“The reality, however, is [that this has] led to a sharp fall in available credit outside of the government schemes, and with non-bank lenders unable to step in because of the funding issues they’re facing.   
“Our research confirms that many established businesses, including those less affected by the issues around Covid-19, are seeing lending supply decline sharply, with a sizeable funding gap opening up for established, mid-size SMEs."

Richard highlighted that Allica was in a strong position to provide that support, and that the lender was really pleased to have provided business owners with £100m of committed finance since June.

He added that the bank was looking forward to growing this support substantially further.

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