What are the best alternatives to Aldermore Bank?

Why consider alternatives to Aldermore?

Aldermore is a specialist challenger bank founded in 2009, now part of FirstRand, that was built specifically for the SME market the high street underserves. It lends from £2,000 to £10,000,000 across asset finance, invoice finance, business loans and commercial mortgages, at 4.5% to 20% per annum with a representative APR of 9.3%, and it gives same-day decisions on asset finance up to £250,000. It holds a full banking licence and is well regarded, with a 4.6 Trustpilot score from around 3,800 reviews.

So the businesses that look elsewhere are rarely unhappy. They are usually blocked by one of four things.

The turnover test comes first. Aldermore asks for £100,000 of turnover on most products, with lower thresholds on some asset finance. That is a hard stop for a micro-business buying a £15,000 van.

The trading history rule comes second. 12 months of trading on most products excludes startups outright.

Price is third, and Aldermore is candid about it. Its rates are not the most competitive available to prime borrowers, so a business with strong accounts and a straightforward asset can often do better.

Ticket size is fourth, at both ends. £10,000,000 is a real ceiling for larger corporates, and invoice finance minimum facility sizes exclude the smallest ledgers.

Below are seven lenders on the Lendus panel that each beat Aldermore on one of those specific dimensions.

Top Aldermore alternatives

1. Close Brothers, best for sector-specialist mid-market deals

Close Brothers is a merchant banking group founded in 1878 and listed on the FTSE 250, running dedicated sector teams rather than a general SME credit desk. Where Aldermore applies a broad policy, Close Brothers underwrites with people who know the asset class, which matters on agricultural equipment, healthcare kit and specialist professional services deals. It lends £10,000 to £5,000,000 at 5% to 18% per annum across asset finance, invoice finance and business loans.

Rates and amounts: 5% to 18% per annum; £10,000 to £5,000,000. Its representative example is £100,000 over 36 months repaying £114,000.

Eligibility: 24 months trading; £250,000 turnover.

Regulatory status: Close Brothers Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority, FCA reference number 124750.

Beats Aldermore on: depth of sector underwriting on complex or unusual assets. It is stricter than Aldermore on both eligibility tests, at 24 months and £250,000, so this is a trade of accessibility for expertise.

2. Shawbrook Bank, best when property is the security and turnover is the obstacle

Shawbrook removes the turnover test entirely on property-backed lending, which is precisely the criterion that stops most Aldermore applicants. It requires no minimum turnover for property finance, and no trading history at all for property-backed bridging. It lends £50,000 to £25,000,000, two and a half times Aldermore’s ceiling, at 0.55% to 1.25% per month on bridging and from 5.5% per annum on commercial mortgages, with indicative terms inside 24 hours.

Rates and amounts: 0.55% to 1.25% per month on bridging, from 5.5% per annum on commercial mortgages; £50,000 to £25,000,000.

Eligibility: 12 months trading preferred, none required for property-backed bridging; no minimum turnover for property finance, £200,000 or more for unsecured business loans.

Regulatory status: Shawbrook Bank Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority, firm reference number 204574.

Beats Aldermore on: property-secured lending with no turnover requirement and a much higher ceiling. It does not offer asset finance or invoice finance, so it replaces part of Aldermore’s range, not all of it.

3. Allica Bank, best for larger commercial mortgages

If the requirement is a commercial mortgage rather than asset finance, Allica goes materially further than Aldermore. It lends up to £10,000,000 on owner-occupied property and up to £15,000,000 on investment property, against Aldermore’s £10,000,000 across the board, and business loan decisions are typically given no later than the next working day. It also runs a business bank account alongside its lending, which Aldermore does not.

Rates and amounts: 9.90% to 13.75% per annum on unsecured business loans of £25,001 to £150,000, with a 3% arrangement fee; commercial mortgage rates are not published and are quoted individually, with arrangement fees of 1.5% owner-occupied and 2.0% investment; £25,001 to £15,000,000.

Eligibility: 3 or more years of filed accounts for unsecured business loans, 2 or more years of financial accounts for commercial mortgages; no fixed minimum turnover, but applicants must demonstrate at least 150% debt service cover.

Regulatory status: Allica Bank Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority, firm reference number 821851.

Beats Aldermore on: commercial mortgage ceiling and business loan decision speed. It is far stricter on trading history, at 3 years of filed accounts against Aldermore’s 12 months.

4. Novuna Business Finance, best for small-ticket asset finance

Novuna, formerly Hitachi Capital Business Finance, undercuts Aldermore at both the small end and on entry rate. It funds from £1,000 against Aldermore’s £2,000 minimum, prices from 4% per annum against Aldermore’s 4.5%, and asks for £50,000 of turnover on smaller ticket deals against Aldermore’s £100,000. It is embedded with manufacturers and dealers, so on a vehicle or equipment purchase the finance is often available at the point of sale.

Rates and amounts: 4% to 18% per annum depending on asset type, term and credit profile; £1,000 to £5,000,000. Its representative example is £50,000 over 48 months repaying £59,500.

Eligibility: 3 or more years trading; £50,000 turnover for smaller ticket deals, £250,000 for larger facilities.

Regulatory status: Mitsubishi HC Capital UK PLC is authorised and regulated by the Financial Conduct Authority, firm reference number 704348.

Beats Aldermore on: minimum deal size, entry rate and the turnover threshold on small tickets. The catch is the 3 year trading requirement, which is three times Aldermore’s.

5. Lombard, best for facilities Aldermore cannot write

Lombard is the UK’s oldest and largest asset finance company, founded in 1861 and part of NatWest Group, and it writes deals up to £50,000,000. That is five times Aldermore’s maximum and puts fleet renewals, plant packages and major acquisitions within reach of a single facility. It prices from 4% to 15% per annum, a lower ceiling than Aldermore’s 20%, which reflects that it is aimed at stronger credits.

Rates and amounts: 4% to 15% per annum; £3,000 to £50,000,000. Its representative example is £100,000 over 48 months repaying £116,000.

Eligibility: 24 months trading; £100,000 turnover.

Regulatory status: Lombard North Central Plc is authorised and regulated by the Financial Conduct Authority, FCA reference number 137710. Part of NatWest Group Plc.

Beats Aldermore on: maximum facility size and top-end pricing for strong credits. Underwriting is traditional and takes 2 to 5 working days, so it will not match Aldermore’s same-day decision under £250,000.

6. White Oak UK, best when no published turnover threshold is the point

White Oak UK, trading through LDF Operations Limited, publishes no minimum turnover and no minimum trading history, and assesses each application on the financials, the asset or invoice book, and the deal structure. For a business that fails Aldermore’s £100,000 turnover test on paper but has a strong underlying deal, that is the difference between a decline and a conversation. It reports an average decision turnaround of around 4 hours, and covers term loans, asset-based lending, invoice factoring and equipment finance.

Rates and amounts: priced per deal, no public rate card; £5,000 to £500,000.

Eligibility: not publicly stated; assessed as part of underwriting.

Regulatory status: LDF Operations Limited, trading as White Oak UK, is authorised and regulated by the Financial Conduct Authority as a credit broker and lender under FCA firm reference number 630633. White Oak UK’s own site states that where White Oak UK itself acts as lender, that specific product is not FCA-regulated.

Beats Aldermore on: decision speed and the absence of a published eligibility floor. The cost is transparency, since there is no rate card to compare before you apply, and you should be clear which entity is lending to you.

7. Cynergy Business Finance, best for asset-based lines above Aldermore’s invoice finance range

Cynergy Business Finance is the asset-based lending arm of Cynergy Bank plc, providing receivables finance, asset finance, inventory finance, property finance, cash flow loans and block discounting from £200,000 to £40,000,000. Where Aldermore’s invoice finance is sized for mainstream SME ledgers, Cynergy is built for businesses that have outgrown that, with a facility ceiling four times Aldermore’s total maximum and coverage across more than 30 industry sectors.

Rates and amounts: no indicative rates, discount margins or factor rates are published; pricing is bespoke and quoted per business after assessment; £200,000 to £40,000,000.

Eligibility: not publicly stated; assessed on the strength of the underlying receivables, stock, property or other assets.

Regulatory status: Cynergy Business Finance Limited’s own asset-based lending activity is exempt from regulation by the Financial Conduct Authority and the Prudential Regulation Authority, per its own website. It is a subsidiary of Cynergy Bank plc, which is separately authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority under firm reference number 575105.

Beats Aldermore on: facility size for receivables and stock-backed lines. The £200,000 minimum rules out small ledgers entirely, and the absence of published pricing means you cannot benchmark before applying.

Comparison table

Monthly rates and annual rates are different units and cannot be compared directly.

How to choose

Choose Close Brothers if your asset is unusual enough that a policy-driven decision keeps going the wrong way and you want a sector specialist to look at it.

Choose Shawbrook if you have property to secure against and Aldermore’s £100,000 turnover requirement is the only thing standing in the way.

Choose Allica Bank if you need a commercial mortgage above £10,000,000 and have at least 2 years of financial accounts.

Choose Novuna Business Finance if the deal is a standard vehicle or equipment purchase under £100,000 and you want the lowest entry rate on this panel.

Choose Lombard if the facility is large enough that £10,000,000 is a constraint rather than a comfort.

Choose White Oak UK if you need a decision quickly and your business does not fit a published eligibility grid.

Choose Cynergy Business Finance if your receivables or stock will support a line of £200,000 or more and you want a bank-backed asset-based lender.

One practical point on asset finance specifically. Because the asset itself is the security, the same deal can be priced very differently by two lenders depending on how each views resale value on that asset class. It is worth putting the same specification in front of a bank and a specialist funder before you sign, since the gap is often larger than the gap between headline rates suggests.