Blog

SMEs

CHAPS vs BACS: which payment method is right for your business?

CHAPS may be better than BACS for some businesses than others, and vice versa. Take a look below to see their benefits and key differences to work out which one could work best for your business.

By Allica Bank

5 minute read · 3 September 2026

SMEs

The Flag Consultancy is flying high into a new chapter

2 minute read · 3 September 2026

SMEs

Preston brewery founder buys premises after 17-year journey

3 minute read · 3 September 2026

SMEs

How to refinance a commercial property

7 minute read · 12 August 2026

SMEs

West Midlands aluminium supplier looks to new chapter after management buyout

2 minute read · 29 July 2026

SMEs

A guide to buying property through a limited company

Lots of businesses buy property – as an investment for rental income or to run as their own HQ. There are pros, cons, and caveats if buying through a limited company. You can learn about them below.

By Allica Bank

7 minute read · 29 July 2026

SMEs

Midlands manufacturer backing cancer care eyes next phase of growth

3 minute read · 21 July 2026

SMEs

Revolving credit facility vs business overdraft: which is right for your business?

7 minute read · 16 July 2026

SMEs

The Growth Guarantee Scheme is getting bigger and better

3 minute read · 16 July 2026

SMEs

Commercial mortgage deposits: a complete guide

6 minute read · 9 July 2026

Criteria	Description
Loan size	£150,000 to £15 million
Repayment type	5-year interest only 5-year partially amortising
Arrangement fee	2.0%
Debt service cover	Commercial: 130% Semi-commercial: 120% Repayment cover calculated at pay rate for fixed rate mortgages and pay rate plus 2% for variable rates.
Early repayment charges	5 year fixed: 5%, 4%, 3%, 2%, 1% (years 1–5) Variable: 3% for the first 5 years

Criteria	Description
Loan size	£150,000 to £10 million
Repayment type	30 year capital & interest 5-year interest-only available at the start of the loan term for loans up to 75% LTV
Arrangement fee	1.5%
Debt service cover	130% Calculated on the rate not including the current account discount Repayment cover calculated at pay rate for fixed rate mortgages and pay rate plus 2% for variable rates
Early repayment charges	5 year fixed: 5%, 4%, 3%, 2%, 1% (years 1–5) Variable: 3% for the first 5 years
Owner-occupied hotels	Loans over 80% of VP value must be fully amortising from day one Personal guarantee to be given for any amount in excess of 70% of VP value

Criteria	Description
Loan size	£200,000 to £15 million
Repayment type	5-year interest only
Arrangement fee	2.0%
Interest cover	130% standard, 145% higher rate taxpayer Gross rent used for residential/ MUFB applications if; evidence of 3 months' loan repayments in cash via bank statements and one UBO/director with Experian Consumer score of 881+ plus a supporting personal guarantee. Otherwise we will use net rent assumption of gross rent minus 10%. HMO properties will always be assessed using gross rent minus 25%
Early repayment charges	5%, 4%, 3%, 2%, 1% (years 1–5)

Criteria	Description
Loan size	£500,000 to £15 million £5 million maximum loan for first time buyers
Repayment type	Capital and interest Experienced operators: 30 years First time operators: 20 years
Arrangement fee	1.5%
Debt service cover	130% adjusted EBITDA for children’s nurseries and experienced care operators 150% adjusted EBITDA for care first-time buyers Repayment cover calculated at pay rate for fixed rate mortgages and pay rate plus 2% for variable rates
Minimum size	Care homes: 20 bedrooms Specialist care: 4 bedrooms, if one or two properties, and flexible if there are three or more properties Children's nurseries: 40 places
Early repayment charges	5 year fixed: 5%, 4%, 3%, 2%, 1% (years 1–5) Variable: 3% for the first 5 years
Specialist care operators	Children’s learning disability care Adult learning disability residential care Adult supported living Minimum of three years as a specialist care home owner-operator required

Criteria	Description
Loan size	£150,000 to £10 million
Maximum loan to value	75% for residential and semi-commercial properties, 70% for commercial
Term	Up to 24 months
Fees	Arrangement fee of 2%, deducted from advance
Borrowers	UK registered limited companies, LLPs, partnerships and sole traders
Security	First legal charge over freehold or long leasehold title(s)
Insurance	Title insurance and search indemnity applied where possible
Valuations	AVMs and desktop valuations available up to 70%
Interest	Retained or serviced

Criteria	Description
Borrowers	UK registered limited companies, LLPs, partnerships and sole traders
Cost plan	Cosmetic: Higher of 15% of OMV, or £50,000 per property. Light: Higher of 50% of OMV, or £75,000 per property. Medium: Higher of 100% of OMV, or £100,000 per property.
Monitoring	Cosmetic and Light refurbishment to be monitored by our asset manager. Medium Refurbishment to be monitored by our QS.
Valuations	Full RICS valuation
Interest	Rolled. Rates are fixed and charged daily in arrears
Refurbishment type	Cosmetic: Works to improve speed of letting and compliance with regulations. Examples include redecoration, EPC improver works, compliance with utility regulations, boiler upgrades, modernisation. Light: As with Cosmetic, but higher cost plan. Medium: Loft conversions, reconfigurations, single story extensions, commercial to residential schemes.

CHAPS vs BACS: which payment method is right for your business?

The Flag Consultancy is flying high into a new chapter

Preston brewery founder buys premises after 17-year journey

How to refinance a commercial property

West Midlands aluminium supplier looks to new chapter after management buyout

A guide to buying property through a limited company

Midlands manufacturer backing cancer care eyes next phase of growth

Revolving credit facility vs business overdraft: which is right for your business?

The Growth Guarantee Scheme is getting bigger and better

Commercial mortgage deposits: a complete guide

Explore award-winning business banking with Allica Bank