Challenger bank Allica Bank and financial consultancy firm The CFO Centre have forged a partnership designed to support established UK businesses. The collaboration targets companies with five to 250 employees that have been trading for more than 12 months.
The CFO Centre provides fractional chief financial officers who offer strategic and operational financial advice to businesses. Allica Bank will now join The CFO Centre’s group of national partners.
The partnership reflects Allica’s mission to form alliances that support established businesses. The bank cites recent data indicating that businesses are facing increased difficulty in securing finance. Loan rejection rates for UK businesses have reportedly risen from between five and 10 per cent 30 years ago to 40 per cent today. The number of businesses applying for external finance also decreased from 65 per cent in 1990 to 25 per cent in 2022 to 2023.
Fractional support for established businesses
Established businesses often cannot afford full-time executive roles, which is where fractional CFO services provide an alternative. This model enables business owners to access strategic financial support on a part-time or project basis. Allica Bank works with organisations offering tailored solutions aligns with its focus on supporting this segment of the economy.
Sophie Hossack, head of partnerships at Allica Bank, said: “Established businesses make up a third of UK employment and GDP, so it’s vital they get the support they need to grow and succeed, which includes working with key professional advisors who add value to their business. That’s why we’re excited to partner with The CFO Centre – giving business owners access to high-calibre CFOs at a fraction of the cost of a full-time hire.”
Matthew Mills, chief revenue officer at The CFO Centre, also added: “Many of the business owners we work with continue to face a broad range of financial challenges and often struggle to secure funding due to their size in comparison to large corporate companies. We are delighted to partner with a forward-thinking bank like Allica, who play a vital role in keeping these businesses primed for growth.”
Allica Bank focuses specifically on banking services for established businesses and reports having lent over £3billion to date. The CFO Centre, founded in 2001, currently supports more than 750 businesses in the UK and Ireland and operates in 18 countries.
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