Business loan declined by Allica Bank, what next?
Allica Bank has declined your commercial mortgage, asset finance or term-loan application. Allica is a UK challenger bank for established SMEs. Its business loans run from £25,001 to £150,000 and its commercial mortgages from £150,000 (per its own site), so its decline patterns differ from fintech declines.
Why this triggers a decline
Allica publishes some of its criteria (checked September 2026 on allica.bank). Business loans (£25,001 to £150,000) are for limited companies and LLPs in England, Scotland and Wales that have filed at least three years of accounts, need debt service cover of at least 150%, and are secured by a personal guarantee.
Commercial mortgages (from £150,000) need two full years of accounts, with loan-to-value up to 80% owner-occupied or 75% for investment property. Allica doesn't publish how often each decline reason occurs. Common reasons include: missing one of those published criteria, too little security or cover for the amount, a complex or overseas group structure, a sector it doesn't lend to, and director credit issues.
Alternatives that work
- OakNorth for an alternative challenger-bank underwriter on the same asset-backed profile
- Specialist commercial mortgage and bridging lenders for property-backed deals
- Funding Circle or iwoca for unsecured working capital where Allica's trading-history or security requirements were the issue
- Asset finance specialists for sub-£150k equipment deals
Lenders that may consider this
- OakNorth (challenger bank, similar asset-backed profile)
- Funding Circle (unsecured term loans, £10k to £750k)
- iwoca (working-capital flexi-loan, smaller ticket)
- Specialist asset finance lenders for equipment
- Specialist commercial mortgage lenders for property-backed deals
What to do first
- Ask Allica for the main reason for the decline.
- If the issue is size, remember Allica's business loans stop at £150,000 and its commercial mortgages start there; check which product fits the amount you need.
- If the issue is trading history (three years of filed accounts for a business loan, two full years for a commercial mortgage), wait until you meet it or look at lenders with shorter requirements.
- If the issue is asset cover, get an updated valuation; LTV thresholds are firm but valuations can shift the maths.
- If the issue is group structure, document the structure clearly with a single chart and confirm UK beneficial owners on the PSC register before approaching OakNorth.
Not for
Very young businesses without the filed accounts Allica asks for, or sole-trader applicants (the FundBiz enquiry form is for limited companies, LLPs and partnerships with four or more partners). Those cases are usually better suited to fintech or specialist alternatives than to another challenger bank.
Send an enquiry
Tell us what you need in 2 minutes. FundBiz is not a lender and does not run a credit check. We pass your enquiry to a business finance broker, who will contact you about your options. For limited companies, LLPs and partnerships with four or more partners.
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