UK-based business challenger bank, Allica Bank, is announced it is expanding its lending and product flexibility in support of UK healthcare operators. The changes enable the bank to better support healthcare operators undertaking larger and more complex transactions, including expansion and longer-term projects.
It is increasing its maximum day one loan sizes to £15m for established healthcare businesses and extending its maximum loan terms to up to 30 years for experienced healthcare operators and up to 20 years for first-time operators. The bank is also broadening its CQC evidence requirements, reflecting the realities of healthcare transactions, including timing gaps around inspections and changes of ownership.
In February, Allica also launched its business overdraft. Overdrafts used to play a big part of business lending, but banks barely use them now. According to Allica, provisions have fallen from £18bn in 2000 to £2.7bn in 2024, with overdrafts now accounting for just 5% of bank lending to businesses. Allica’s overdraft offers healthcare businesses limits of up to £2m, making it suitable for substantial, multi-site and cashflow-intensive businesses that continue to rely on flexible, day-to-day funding.
“Healthcare operators form a vital part of the UK’s established business sector, underpinning both our economy and local communities,” said Anthony Newman, senior specialist relationship manager for Healthcare. “These latest updates . . . are designed to support both experienced operators and new entrants to the sector – enabling their clients to invest, grow and continue providing essential services in communities across the UK.”
Allica, built to serve established businesses with between 5 and 250 employees, was granted its UK banking license in 2019. It achieved Unicorn status earlier this year with the completion of a U$155m Series D fundraise.
