UK challenger bank Allica Bank has expanded its lending appetite for health and care operators, increasing maximum day-one loan sizes to £15 million for established healthcare businesses and extending maximum loan terms to 30 years.

According to Caring Times, first-time operators will be eligible for loan terms of up to 20 years under the revised framework, which also includes a broadening of Care Quality Commission evidence requirements to reflect the practical realities of healthcare transactions, including timing gaps around inspections and changes of ownership.

The bank is additionally extending its business overdraft product to the healthcare sector, offering limits of up to £2 million. Allica said the facility is designed for multi-site and cash-flow-intensive businesses that require flexible day-to-day funding.

The overdraft expansion follows Allica's February launch of the product for the broader business market, at a time when UK business overdraft provisions have declined from £18 billion in 2000 to £2.7 billion in 2024, with overdrafts now representing just 5% of bank lending to businesses.

"Healthcare operators form a vital part of the UK's established business sector, underpinning both our economy and local communities," said Anthony Newman, senior specialist relationship manager for healthcare at Allica Bank. "These latest updates are designed to support both experienced operators and new entrants to the sector, enabling their clients to invest, grow and continue providing essential services in communities across the UK."

The changes reflect growing recognition among specialist lenders of the funding complexity facing health and care businesses, particularly those managing multi-site operations or navigating regulatory transition periods.

Read the full report to explore the complete details of Allica Bank's updated healthcare lending framework.