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Allica Bank has expanded its range of commercial mortgages for owners and tenants to cover interest-only terms up to five years under the British Commercial Bank’s Recovery Lending Scheme.
Business Bank says firms eligible for a loan of up to £2m must have a turnover of up to £45m.
The price of the new loan is currently 25% lower than a full commercial five-year fixed-rate company loan on a fully amortized basis. these are the prices IN 8% to 70% credit on value and 8.3% above that.
The lender says the recovery loan scheme allows it to support more established SMEs with their expansion plans and “remains an untapped opportunity as many business owners don’t see what they can benefit from.”
He points out that without the program, he could only offer a short interest period at the start of a long-term amortizing loan, adding that the scheme allows him to lend to “eligible businesses that would otherwise be above his appetite.” “.
He adds that firms can take out this loan even if they have taken previous government-backed loans such as the Coronavirus Business Interruption Loan Scheme (CBILS), the Coronavirus Large Business Interruption Loan Scheme (CLBILS) . ) and the Recovery Loan Scheme (RBLS).
Allica Bank Chief Commercial Officer Nick Baker said: “Lack of understanding of the Recovery Lending Scheme means many businesses are missing out on the opportunity to secure growth funding at a time when the UK economy needs to grow more than ever.
“Many business owners, for example, think that they can only use a loan secured by the Recovery Loan Scheme to recover from the Covid-19 pandemic, but in fact it can help in all situations, such as buying commercial real estate, acquiring and refinancing. . . .
“Additional paperwork is also a lot easier than many people think, as most of the extra administrative work falls on the lender, not the borrower.”
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