allica bank

Allica Bank sees care home loan enquiries hit £180m

Allica Bank has received over £180m of enquiries from care home businesses since it launched its specialist proposition and its dedicated care homes team in September 2021.

According to the bank, the increased demand is driven by an influx of new market entrants, existing operators looking to expand, and a reluctance among incumbent banks to service the sector.

Allica’s care home proposition provides bespoke funding based on an operator’s business plan and proposal, with a focus on smaller firms, including those looking to acquire their first care home, single-home operators looking to expand into second or third homes, or those acquiring other operators to grow their portfolio.

In April, the bank increased the maximum customer exposure for care home customers to £10m to enable more operators to strengthen and scale their businesses.

It also recently expanded its specialist team in the north of England and Scotland with the appointment of Brian Bovell as a specialist relationship manager.

“Incumbent banks tend to steer clear of the care home sector altogether because of the added levels of complexity when assessing transactions, and this is exactly why Allica has doubled down on it.” said Brian.

“We have identified the importance of giving brokers and customers access to that market expertise ourselves, and it’s proven to be incredibly popular so far.

“First-time buyers in particular often struggle to get the finance they need; this is a real worry, considering their importance to the long-term sustainability of the sector, which is adjusting to a post-pandemic world and an ageing population. 

“We’re pleased to be one of the few banks with the capacity to help them.”

Nick Baker, CCO at Allica (pictured above), added: “This vital sector needs all the support it can get following the pandemic, and I’m pleased that Allica is able to provide that. 

“We’ve had fantastic feedback from our broker community since launching our specialist team last year, and we have big plans to expand our proposition even further in the coming months.”

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