Allica Bank – business banking analysis and reviews

Last updated on 10 August 2023

Allica Bank is a relatively new addition to the business finance landscape, earning a banking license in 2020. This provider is best regarded for its savings accounts, which offer some impressive interest rates – and once you become an Allica Bank customer, you can also apply for a free current account.

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The snag is that Allica Bank demands a minimum deposit of £10,000 in any savings account, which may be out of the reach of some sole traders and smaller businesses. This bank also offers business mortgages, whether on an owner-occupier basis or as an investment, and asset finance for major purchases required to take your company to the next level.

Video: Getting started with business bank accounts

Allica Bank business banking services

Pros and cons of Allica Bank for business services

ProsCons
No monthly fees Current account only open to existing customers
Access to asset finance £10,000 minimum deposit to open a savings account
Competetive savings interest rates No Android app
Dedicated relationship manager New to the industry
FSCS protected
Pros and cons of Allica Bank
Allica online banking login

Allica Bank business current accounts

Allica Bank offers a free business current account, called the Business Rewards account, but this is only open to existing customers. You will need to open and run a savings account to qualify for this current account.

Business overdrafts

Not available through Allica Bank.

Business savings accounts

Allica offers five types of business savings account. The minimum deposit for any of these accounts is £10,000, and the maximum deposit is £25,000.

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95-day Notice savings account

Provide a minimum of 95 days notice before making withdrawals from your savings, and generate a a sample AER of 3.10%.

180-day Notice savings account

Provide a minimum of three months’ notice before making withdrawals from your savings, and generate a a sample AER of 3.20%.

6 Month Fixed Rate savings account

Average AER of 3.02%, so a deposit of £10,000 would generate around £150 in interest upon maturation after six months.

12 Month Fixed Rate savings account

Average AER of 4.02%, so a deposit of £10,000 would generate around £402 in interest upon maturation after one year.

24 Month Fixed Rate savings account

Average AER of 3.50%, so a deposit of £10,000 would generate around £712.25 in interest upon maturation after two years.

Allica Bank at a glance

Phone number0330 094 3333
App downloadsiOS only
Websitewww.allica.bank
Number of branchesN/A – online only
FSCS protected?Yes
Founded2020
Key information

Allica Bank business finance and loans

Video: Business loans and finance explained

Allica Bank offers asset finance and mortgage lending alongside savings accounts:

Asset finance

This bank will loan you between £25,000 and £1,000,000 to make a a business-critical asset purchase, repayable over up to seven years. A £295 documentation fee will be also be payable. Interest rates will be discussed upon application. See our guide to asset finance.

Business mortgages

Allica Bank offers two types of business mortgage lending. 

Commercial owner-occupier mortgage

A mortgage loan between £150,000 to £10,000,000 on a property that your business will trade from. This could be an office, a factory, or any other kind of property. This mortgage can be repaid over a period of up to 25 years and has a maximum loan-to-value (LTV) ratio of 75%.

Commercial investment mortgage

For businesses that wish to purchase property as an asset that is likely to appreciate in value over time. The terms and conditions of this mortgage are as above – the loan will need to be between £150,000 and £10,000,000, can run for 25 years, and LTV cannot exceed 75%.

Allica Bank reviews

What are other business banking customers saying about this bank?

Review platformScoreNumber of votes
TrustPilot4.5/5511
FeefoNot reviewedN/A
Reviews.co.ukNot reviewedN/A
Smart Money People4.85/5793
Which?Not reviewedN/A
Average score4.7/51,304
Alice Bank reviews and ratings

Business eligibility criteria

Applicants for a savings account must be the registered owner of a business listed on Companies House, or a sole trader registered with HMRC. If this account is successfully opened, you can apply for a Business Rewards current account.

Requests for asset finance will be assessed on a case-by-case basis. You will need to prove at least two full years of business accounts with a clean credit history, and explain the circumstances behind your application.

Business finance alternatives

Perhaps the most prominent rival is Aldermore, which also offers a range of savings accounts and lending products. Alternatively, you could investigate the many and varied options on the high street and see how their interest rates compare.

Additional considerations

Allica Bank was technically formed in 2017 under the name Civilised Bank but voluntarily relinquished its banking license in 2018 due to insufficient IT infrastructure. Following a name change and new management structure, Allica Bank rose from the ashes in 2020. Some savers may be uncomfortable using this bank based on these historic issues, but they appear to have been successfully resolved – though Allica Bank still does not have an Android app.

FAQ

Is Allica Bank a proper bank?

Yes, Allica Bank is a fully regulated and authorised UK bank. It is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. This bank also holds an Electronic Money Institution licence from the FCA, which allows it to issue e-money and provide payment services. By being regulated, this bank is subject to the same strict capital requirements and regulatory standards as other UK banks, meaning that your money is secure.

What fees does Allica Bank charge for its business accounts?

It does not charge fees for its business accounts. This means you don’t have to worry about hidden fees, overdraft charges or penalty fees. This bank also offers competitive rates on loans and other financial products so you can get the best deal for your business.

How to open a Allica Bank business account?

If you’d like to open a business account, you can do so online in just 15 minutes. You will need to provide your company name and registration number (if registered), your company address and a few other details. You’ll also need to be ready to upload some documents such as proof of identity, a photo of the business sign and your recent bank statements.

What services does Allica Bank offer to businesses?

It offers a range of services to businesses, including: business savings accounts, asset finance, invoice finance, overdrafts and loans. It also offers digital banking services such as the ability to open an account online in just minutes, access to real-time data and analytics on your business finances, and the ability to make payments quickly and securely.

What types of payments does Allica accept?

It accepts a wide range of payments, including debit cards, direct debits, BACS and Faster Payments. It also allows you to pay in foreign currencies if required. The bank also has a secure online portal with which customers can securely make payments or check their account balances.

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Reviewed by , Managing Director

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