As a business bank account user, you need a reliable banking service with modern tools and technology to manage your business finances and expenses.
You might need to access savings accounts and have access to relationship managers or growth finance options.
Allica Bank offers businesses a range of features that make this banking provider a leading service for companies in the United Kingdom. But which features can you use, and what are the platform's pros and cons?
Our Allica Bank review will answer all of these questions and more. We will reveal our findings related to our experience when using Allica Bank to help you decide if this platform is right for you.
What Is Allica Bank?
Allica Bank is a leading, modern relationship bank that focuses on assisting UK businesses and driving success for them. It specifically serves small and medium companies with its tools and technology, offering a service that has won the bank several awards, including the Business Moneyfacts commercial mortgages provider award and the best business finance provider award from British Bank Awards.
This bank received its banking licence in 2019 and has a presence in London, Manchester and Milton Keynes. It has more than 250 employees, including relationship managers in England, Scotland and Wales.
We noticed that this bank has specialist knowledge related to SME banking, making it a go-to banking provider for companies that may feel neglected by big banks.
Allica Bank's Features and Services
Allica business bank account banking services offer a range of features that are tailored to small and medium-sized businesses.
Here are the main features and services they can offer your UK-based company.
Business Current Account and Rewards Account
Alongside a business current account that offers a 4.33% annual equivalent rate, the Allica banking institution offered us a business rewards account. The business rewards account has several benefits, including 1.5% cashback, no monthly fees, a free BACS feature and a UK-based support team. It comes with Financial Services Compensation Scheme protection and the option to manage the account using a mobile app.
What we liked about the Business Current account was that it came with free bank payments in addition to its zero monthly fees. We also liked that this account came with an instant access savings pot, which had no monthly fees and a generous 4.33% annual equivalent rate of interest.
Dedicated Relationship Manager
The Allica banking institution offers a dedicated relationship manager, which we found ideal for our business. This service helped us manage our accounts and contribute to our financial planning challenges. It also helped us resolve any queries we had related to interest rates, asset finance and loan applications to help grow our small UK-based business.
Savings Account
One of the great things about the Allica banking institution we should mention in this Allica Bank review is the savings account for businesses. It offered us a 4.56% interest rate on our business savings when we selected the 12-month fixed rate.
The application process was easy, and we completed it online. However, there were several other savings account options, which we looked into when reviewing this bank. Continue reading for more information on this.
It should also be noted that Allica is now offering personal savings accounts as well. As of the time of this writing, a 6-month fixed rate account offers 4.30%.
Asset Finance
For flexible asset finance, the Allica banking institution is ideal. They can provide a maximum of £1m to small businesses to ensure you can purchase the current equipment required to grow and achieve optimum productivity.
We used this service and paid each month to use the electric vehicle asset. We didn't need to pay the entire cost upfront to use the asset. When we had made all the installations, we owned the asset.
With asset finance from Allica, the minimum loan we could apply for was £25,000. We liked that this service helped us in terms of cash flow and gave us access to well-needed assets. To use this service, we needed to complete a form and select the asset type we wanted to acquire. We then submitted the form and waited for Allica to reply.
Commercial Mortgages
The Allica banking institution offers commercial mortgages and finance for commercial properties that are tailored to companies. We could choose between commercial owner-occupied mortgages and commercial investment mortgages.
When we chose the commercial owner-occupied mortgage to use as our office space, we paid a 2% arrangement fee and could choose a loan worth up to £10m.
We received the maximum loan-to-value ratio of 80%, meaning Allica was willing to loan us £400,000 for a property valued at £500,000. We found that this loan-to-value ratio gave us fair loan terms and allowed us to set the term we wanted with Allica; they offer a term of between five and 25 years.
Research told us that commercial investment mortgages with the Allica banking institution were slightly different regarding the loan-to-value ratio. This was set at a maximum of 75%, but the loan term and arrangement fee were the same as the commercial owner-occupied mortgage options––between five and 25 years and 2%, respectively.
Growth Finance
Allica offers flexible growth finance loans, with the minimum loan equating to £1m and the maximum loan being £10m. We found that the loan term was shorter than that of commercial mortgage services, lasting between three and five years.
We liked that these loans supported the growth of our business and could use them to invest in new product lines for our company. Research told us that these loans are also ideal for business acquisition purposes and refinancing.
Who Benefits From Using Allica Bank?
A few individuals can benefit from using Allica Bank. Are you considering using this banking provider?
Here are the main people who can gain advantages from this banking service.
✅ Small businesses: Contrary to larger banks, the Allica banking institution offers businesses tailored services specifically to small businesses. Its relationship management services are specifically aligned to support businesses that want to grow and offer financial advice for this purpose.
✅ Medium-sized business: Medium-sized businesses are also companies that can benefit from using Allica Bank. The range of services, including growth finance and commercial mortgages, is ideal for companies that need to scale or are looking for funding.
✅ Individuals needing a savings account: With the Allica banking institution, individuals who need a savings account can make use of the personal savings account feature. This feature is ideal for people who want to save for a property, a holiday or their retirement. The personal savings account feature is ideal for saving funds between £10,000 and £250,000.
What Are the Fees for Allica Bank?
Transaction fees do not apply with Allica when you receive incoming or outgoing payments.
You'll also not face direct debit fees. No monthly fees apply to the Business Rewards Account, but outgoing CHAPS cost £20 for each transaction. You'll also not have to pay for cash withdrawals with this banking provider.
Pros and Cons of Allica Bank's Services
All in all, Allica has a great range of services that work for small and medium businesses.
Here, we'll look closely at the advantages and drawbacks to ensure you make the most informed decision before selecting this banking service for your business.
| Pros | Cons |
|---|---|
| ✔️ No monthly fees: You will not need to pay monthly fees to use the Allica Business Current Account, meaning you can save money with this banking provider. | ❌ A lack of frequent customer support: Allica does not provide customer support on Wednesdays, meaning you may struggle to get queries answered at all times of the week. |
| ✔️ Local relationship managers: You can access local relationship managers in many locations in the United Kingdom. These relationship managers offer specific advice to help your business thrive. | ❌ No local bank branches: This bank provider does not have local bank branches, although you can use its relationship management services, which are present in many UK locations. |
| ✔️ Asset finance perks: Your business can receive the assets it needs without paying the entire cost upfront. The asset finance options range from £25,000 to £1m. | |
| ✔️ Savings account with the Business Rewards Account: You'll instantly receive a savings account with your Business Rewards Account with a favourable 4.33% annual equivalent rate. |
Allica Bank Review: Our Direct Review of Allica Bank
After we had used some of the features of Allica Bank, we gathered what we liked about the banking institution.
These are some of our preferred features available through Allica.
A Range of Savings Account Selections
Allica Bank's savings accounts were ideal for our business. We applied for the savings account online and tried a few different rates to test the service. We noticed that a 6-month Fixed Rate option and a 180-day Notice option were available. Allica also offers a 95-Day Notice option and an Easy Access savings account.
With the 6-Month Fixed Term Savings Account, Allica guaranteed our rate for a six-month timeframe. In other words, since this is a fixed-term account, Allica did not change the interest rate we earned.
We had to adhere to the two-week deposit window, meaning we had to make a deposit within two weeks of opening the account. The account allowed us to earn a 5.00% annual equivalent rate of interest and allowed us to invest a maximum of £2m.
With the 180-Day Notice Account, a 5.01% annual equivalent rate of interest is applied. With this account, we learned that clients must give 180 days' notice to make withdrawals from the account.
Fast Account Opening Process
What was ideal about Allica Bank was the fact that the account opening process was fast and easy. We did need to meet some eligibility criteria, such as having a 12-month minimum trading history. We also needed to have a £500,000 annual turnover and five employees.
We could complete the process online by filling out the required details of the form. We entered the company name, business email and phone number, and whether we had been trading for at least 12 months.
Since we met these criteria, the account opening process was faster than with other banks.
Local Relationships Manager Service
We liked that the local relationship managers all had decades of experience in supporting small and medium businesses. We felt that we could trust these services and received tailored support for our queries, such as the specific business loan application process and investment opportunities that would have been ideal for our company
We liked that we could receive specific support for commercial mortgages from Allica's relationship manager services, who worked closely with us and fully understood our needs.
Is Allica Bank Regulated?
Allica has several bodies that regulate its services to protect its clients.
Some of the regulatory bodies we were protected by when using this banking service are listed below:
Allica is regulated by the Financial Services Compensation Scheme, meaning your funds or deposits of up to £85,000 will be protected. If the Allica banking institution fails, you will still be compensated by the scheme if you’ve got a business current account or savings account with them.
Allica is also regulated by the Prudential Regulation Authority which provides supervision for financial institutions and sets standards that banks must adhere to.
How Can Users Access the Allica Bank Account?
Allica account holders can access their accounts through the mobile app or website.
We noticed that Allica does not have specific bank branches; however, it has relationship managers in England, Scotland and Wales. We found this sufficient to complete our business banking needs and found it the ideal business banking experience.
How Convenient Is Allica Bank's Customer Service?
We liked that this banking service has a UK-based customer service team.
Customer reviews show that many are pleased with the customer service, stating that the relationship managers provide “amazing” or “excellent” customer service.
We found that it offers customer service from Monday to Friday between the hours of 9 am and 5 am, but this timetable excludes Wednesdays. However, it does have a help centre that offers advice and guidance to clients.
Allica Bank Review: The Takeaways
Overall, Allica Bank is a handy banking institution that works perfectly for small and medium businesses. The Allica business savings account, business rewards account, relationship manager service and regulating bodies made this ideal for managing business finances.
Although we advise you to contact Allica for more information on their services, we recommend Allica for SMEs. Don't forget to compare this bank to alternative options to cover all bases, but don't rule Allica out when choosing a business banking service.
