Allica Bank has introduced a long-term sub-hire product for the UK asset finance market, expanding its leasing proposition for brokers and hire companies serving established SMEs.
The new product allows hire companies to lease equipment to their customers for up to 36 months, with the option of fixed-rate hire purchase agreements of up to 72 months. According to Allica, the structure enables hirers to align equipment use with project timelines and avoid capital being tied up in idle assets.
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The bank described the launch as a complement to its existing 180-day short-term sub-hire offer, which has been in place since 2021. The long-term product is available for hard assets, including wheeled and tracked plant and machinery.
Jonathan Crook, Allica Bank’s Head of Underwriting – Asset Finance, said the new product would offer “a greater level of flexibility when it comes to equipment leasing,” helping business owners ensure “value isn’t locked up in unused equipment.”
The announcement follows a record month for the bank’s asset finance division in March. Allica reported processing more than 1,000 applications valued at over £100 million, with a 60% approval rate. Its operations team handled 660 broker-led applications, raising over 500 document sets and completing 400 cases worth £37 million.
Carlie Southworth, Operations Manager for Asset Finance, attributed the performance to the bank’s mix of technology and manual oversight. She said the team had delivered “personal service” despite high volumes, maintaining Allica’s 24-hour credit decision and payout service level agreement.
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By GlobalDataThe bank recently reported pre-tax profits of £29.9 million for 2024, nearly double the figure from 2023, alongside a total lending milestone of £3 billion.
