Allica Bank, the UK’s leading challenger bank focused on established businesses, has announced the launch of a new long-term sub hire product—expanding its fast-growing asset finance offering.
The innovative solution allows hire companies to lease equipment to their customers for up to 36 months, with the option to transition into fixed-rate hire purchase agreements lasting up to 72 months. This gives businesses greater flexibility to use equipment for the duration of specific projects without tying up capital in assets that may sit idle once the work is complete.
This new long-term offering complements Allica’s successful short-term sub hire product, which provides flexible 180-day finance options and has been well received since its 2021 launch.
Flexible Equipment Finance for Plant and Machinery
The new product is available for hard assets, including wheeled and tracked plant and machinery. Brokers and businesses can also take advantage of Allica Bank’s renowned service standards, including fast turnaround times, flexible terms, and a personal touch that distinguishes the bank from traditional lenders.
Record-Breaking Performance in March
The product launch follows a record month for Allica’s asset finance division in March. The team processed over 1,000 applications, valued at more than £100 million, with an approval rate exceeding 60%.
Operationally, the bank’s team handled 660 broker-led applications, issued over 500 document sets, and completed more than 400 deals—totalling £37 million. Remarkably, they achieved this while maintaining a perfect record on customer service responsiveness, answering every single phone call.
Despite the high volume, Allica upheld its industry-leading 24-hour SLA for both credit decisions and pay-outs, ensuring that brokers and their clients experienced minimal delays.
A Combination of Technology and Expertise
Carlie Southworth, Operations Manager for Asset Finance at Allica Bank, said:
“March was a fantastic achievement. Processing over £100 million in applications is no small feat, and it showcases the power of combining smart technology with expert human service. We remain committed to delivering the fast, personal service that our brokers and SME clients expect.”
Meeting the Evolving Needs of SMEs
Jonathan Crook, Head of Underwriting – Asset Finance, added:
“We’re proud to introduce our long-term sub hire finance product, designed with the real-world needs of brokers and their clients in mind. This new offering gives business owners the freedom to finance essential equipment without locking up capital in underused assets.”
He continued, “By listening closely to our broker network and SME clients, we’re able to design flexible, responsive finance solutions that support long-term growth.”
Allica Bank’s Growth Story
Allica Bank continues to strengthen its position in the SME finance space, recently reporting pre-tax profits of £29.9 million in 2024—nearly double its 2023 figures. With over £3 billion in lending now delivered, the bank remains committed to helping established UK SMEs access the finance they need to thrive.
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