By Charissa Chang, Head of Broker Sales - Commercial Mortgages at Allica Bank
Commercial finance has come a long way in the last few years. The market is more competitive, more complex, and more important than ever for businesses looking to grow, invest or refinance.
At the same time, the role of advisers is changing. Brokers and accountants aren’t just sourcing loans, they’re helping their clients get more value from their whole financial setup.
The market has moved, but it’s not always easy to navigate
Over the past four years, challenger and specialist lenders have processed the majority of lending to small and medium-sized businesses. Innovation and competition have broken the dominance of the big banks, giving borrowers more choice and more flexibility.
But more choice often means more complexity. Business finance has become harder to navigate, with changing criteria, new products and unfamiliar processes. For already stretched business owners, it can feel like a full-time job just to keep up.
That’s where advisers come in. Brokers and accountants are no longer just deal-makers, they’re financial guides. Helping clients compare lending terms, make informed decisions, and spot opportunities to consolidate or improve their position.
And when done well, this kind of support can unlock major value. Whether it’s securing a more competitive fixed rate, easing a cashflow pinch with a flexible facility, or spotting where a wider banking relationship could pay off. These insights make a tangible difference.
What’s Available Right Now
In today’s shifting economic landscape, it’s important that financial solutions evolve to meet the changing needs of SMEs. Several recent updates in the commercial mortgage and business banking market are designed to provide more accessible and flexible funding options particularly for owner-occupiers.
Some key developments include:
- Improved commercial mortgage pricing, with rate reductions that make borrowing more affordable for a wider range of businesses.
- More flexible affordability criteria, such as adjusted stress testing and debt service cover ratios, allowing more businesses to qualify for funding.
There is also growing recognition of the vital role brokers play in supporting business clients.
Allica Bank has introduced several of these initiatives. However, to find the right solution for your client’s specific needs whether that includes commercial lending, banking services, or both we recommend speaking to a specialist distributor like Aria Finance, who can help you navigate the market and identify the most suitable lender and product.
What it means for borrowers and brokers
If you’re a business owner, now’s the time to take a fresh look at your money setup. There are real opportunities to reduce costs, improve flexibility and get more from the relationship with your bank especially if you work with an adviser who knows where to look.
If you’re a broker, it’s worth staying close to how banks are evolving. The market is moving quickly, and those that keep their clients informed will be best placed to support them as lending becomes more relationship-led and banking more rewarding.
