OakNorth Business Loans: Review and Alternatives

OakNorth is a UK bank that specialises in larger, bespoke business loans, typically from around £250,000 into the millions, aimed at established, profitable businesses and experienced property investors. It suits borrowers who want a relationship-led, individually underwritten facility rather than an off-the-shelf small loan, and who can evidence trading history or a strong asset base. This review explains how OakNorth works, who it fits, and where alternatives such as Together and Allica may serve you better.

Greenwood Capital is a whole-of-market finance broker. We are not a lender and this page is educational, not financial advice. Always confirm current terms directly with any lender before you commit.

Who is OakNorth and who does it suit?

OakNorth Bank is a UK bank founded in 2015 that focuses on lending to established small and medium-sized businesses and on property finance. It is known for a tailored underwriting approach where a deal team assesses each business individually rather than relying purely on automated scoring.

OakNorth tends to suit trading businesses with a track record, clear profitability or strong forecasts, and a funding need that is too large or too complex for a standard online small-business loan. Typical borrowers include care operators, hospitality groups, manufacturers, professional services firms and property investors or developers.

OakNorth business loans at a glance

Figures above are directional and can change. Confirm current ranges, rates and criteria with OakNorth.

How does OakNorth work and what does it offer?

OakNorth provides bespoke, individually underwritten loans rather than standardised products, so the structure is built around the specific deal. A dedicated relationship team and credit team assess the business, its financials and the security on offer, then structure repayments, term and covenants to fit.

The main areas OakNorth lends into include:

• Business term loans: funding for growth, working capital, capital expenditure or restructuring, usually secured against assets.
• Acquisition and management buy-out finance: support for buying another business, buy-ins or buy-outs.
• Property investment finance: loans secured against commercial or residential investment property, including portfolios.
• Property development finance: funding for ground-up development or major refurbishment, released in stages.
• Refinancing: replacing existing facilities, sometimes to release equity or improve terms.

A defining feature is flexibility. Because deals are hand-structured, OakNorth can often accommodate seasonal cash flow, phased drawdowns, interest-only periods or unusual security. That flexibility is most valuable on larger, more complex transactions and less relevant for a straightforward small loan.

What are OakNorth’s eligibility criteria?

OakNorth generally looks for established, creditworthy businesses that can demonstrate the ability to service and repay a substantial loan, usually supported by tangible security. It is not aimed at start-ups or very small borrowing needs.

In practice, underwriters tend to focus on:

• Trading history and profitability: a track record of revenue and, ideally, profit, or robust, credible forecasts for growth or development deals.
• Debt serviceability: evidence that cash flow comfortably covers repayments, often measured through debt service cover.
• Security: property or other business assets to secure the facility, with the loan sized against value and risk.
• Management strength: the experience and credibility of the directors or sponsors, which matters more in bespoke lending.
• A clear purpose and exit: a sensible reason for the funding and a realistic plan for repayment or refinancing.

Because the bank underwrites individually, a slightly imperfect profile in one area can sometimes be offset by strength elsewhere, for example strong security or an experienced management team. This is different from automated lenders that apply fixed cut-offs.

How are OakNorth’s costs and terms structured?

OakNorth pricing is bespoke, so the rate and fees reflect the risk, the security, the loan size and the term rather than a single published rate card. As a general rule, stronger security, lower loan-to-value and a solid trading record tend to point towards more competitive pricing.

Costs on this kind of larger secured lending are typically made up of several elements:

• Interest: usually charged on the drawn balance, on a fixed or variable basis depending on the deal.
• Arrangement or facility fee: a percentage of the loan, often payable on completion.
• Professional and legal costs: valuation, legal and, on development deals, monitoring surveyor fees.
• Possible exit or non-utilisation fees: depending on how the facility is structured.

Rates vary considerably by profile and security, so we do not quote figures here. Always ask OakNorth for a full breakdown of the interest rate, all fees and the total cost over the term before you proceed, and compare that against the wider market.

What is the OakNorth application process, step by step?

The OakNorth process is relationship-led: you discuss the deal with a team, provide financial information, and the bank structures and underwrites an offer rather than issuing an instant automated decision. A typical journey looks like this:

• Initial conversation: you outline the amount, purpose, security and timescale, either directly or through a broker.
• Indicative terms: if the deal fits appetite, OakNorth issues heads of terms setting out the proposed structure and pricing.
• Information gathering: you supply accounts, management figures, forecasts, details of security and information on the directors.
• Credit assessment and valuation: the deal is underwritten and any property or assets are valued.
• Credit approval and formal offer: terms are confirmed subject to legal work and conditions.
• Legals and completion: solicitors handle security and documentation, then funds are released, sometimes in stages for development.

How fast is OakNorth and what should you have ready?

OakNorth is generally quicker than a traditional high-street bank on complex deals, but bespoke underwriting and property security mean funding usually takes weeks rather than days. If you need a small amount within 24 hours, a bespoke bank loan is not the right tool.

You can speed things up considerably by preparing your information in advance. Have ready:

• Two to three years of filed accounts, plus up-to-date management accounts.
• Cash flow forecasts and, for growth or development, a clear business plan.
• Details of the security, including property addresses, tenancies and any existing charges.
• Information on the directors or sponsors, including experience and assets.
• A clear statement of the loan amount, purpose and repayment or exit plan.

A worked example of an OakNorth-style deal

Consider a profitable care home operator that wants to buy a second site for £2 million and refurbish it. The business has three years of solid accounts, experienced directors and its existing freehold as additional security.

A bespoke lender like OakNorth could potentially structure a facility that funds the purchase and phases the refurbishment cost, with an interest-only period while the new home fills to capacity, then moves to capital and interest repayments. The security, the track record and a credible forecast would all support the case.

A standardised online loan would likely be too small or too rigid for this, while a mainstream bank might move too slowly. This is the type of larger, tailored, asset-backed deal where OakNorth’s approach can be genuinely well suited. This example is illustrative only and not a quote or a recommendation.

OakNorth pros and cons

Pros

• Bespoke underwriting that can accommodate complex or unusual deals.
• Access to larger facilities that many online lenders do not offer.
• Relationship-led service with a dedicated deal team.
• Flexible structures, including phased drawdowns and interest-only periods.
• Often faster than a traditional high-street bank on complex lending.

Cons

• Not suited to start-ups, very small loans or unsecured micro-borrowing.
• Bespoke deals still take weeks, so it is not for same-day funding.
• Pricing is individual, so you need to request and compare a full cost breakdown.
• Usually requires tangible security such as property or business assets.
• More documentation and underwriting than a simple online application.

How does OakNorth compare to the wider market?

OakNorth is one of several lenders serving established businesses and property borrowers, and the right choice depends on your size, security and purpose. Here is how it sits against three named alternatives and the broader market.

Together

Together is a specialist secured lender with a long track record in property-related and non-standard cases. It is often used for bridging, commercial mortgages, buy-to-let and situations where the property type, credit profile or timescale falls outside mainstream criteria. Together can be a strong option where flexibility on security and speed of a secured bridge matter, whereas OakNorth is generally geared towards larger, bespoke trading-business and development facilities. Terms and rates differ by case, so compare both.

Allica Bank

Allica Bank focuses on established small and medium-sized businesses, offering commercial mortgages, asset finance and business current accounts with a relationship-led approach. It can be a natural comparison to OakNorth for established SMEs seeking secured lending, and may suit borrowers whose deal is slightly smaller or more standardised. Where OakNorth often leans into larger, complex and development deals, Allica is a strong contender for mainstream commercial mortgages and asset-backed SME lending. Confirm current criteria with each.

High-street banks

Mainstream banks can offer competitive pricing for straightforward, well-secured lending to established customers, particularly where there is an existing banking relationship. The trade-off is often slower decisions, tighter criteria and less appetite for complex or non-standard deals. For borrowers whose case is simple and strong, a high-street bank is worth comparing on cost.

Online and marketplace lenders

Online business lenders and marketplaces provide fast, largely automated funding, typically for smaller amounts and shorter terms, often unsecured. They are well suited to quick working capital needs but rarely offer the loan size, flexibility or bespoke structuring that OakNorth provides. For a large, asset-backed, tailored facility, they are usually the wrong tool.

Who is OakNorth best for, and who should look elsewhere?

OakNorth is best for established, profitable businesses and experienced property investors or developers who need larger, tailored, secured funding and value individual underwriting over a fixed product. If your deal is sizeable, involves property or complex cash flow, and you can evidence a track record and security, it is well worth considering.

You should probably look elsewhere if you are a start-up, need a small unsecured loan, want same-day funding, or have no assets to offer as security. In those cases, online lenders, asset finance providers or specialist secured lenders such as Together may fit better, and a broker can help you compare across the whole market.

Let Greenwood Capital compare the market for you

Every business and every deal is different, and the lender that looks best on paper is not always the best fit for your circumstances. Greenwood Capital is a Manchester-based, whole-of-market finance broker, and we can compare OakNorth alongside lenders like Together, Allica and many others to match your situation.

This page is general information, not financial advice. If you would like impartial help understanding your options and how different lenders compare, get in touch and we will talk through your situation with no obligation.