Aldermore Bank
A FirstRand-owned UK challenger bank that lends to SMEs through asset finance, invoice finance, asset-based lending and SME commercial real estate.
What they do
Aldermore is a deposit-funded UK challenger bank (founded 2009, HQ Reading, owned by South Africa's FirstRand since 2018) whose business lending runs across four secured lines: asset finance (hire purchase, finance/operating lease, refinance), invoice finance, asset-based lending (ABL) and SME commercial mortgages. Its ABL proposition funds against the combined value of debtors, plant and machinery, inventory and property, and is positioned for larger SMEs undertaking event-driven change such as MBOs/MBIs, acquisitions, growth and restructuring. Invoice finance advances up to 90% of outstanding invoice value as working capital. It operates digitally and through intermediaries, with no branch network, and carried total customer lending of £15.3bn at 30 June 2024.
Where they fit in a lower-mid-market raise
Aldermore is a fit in a 3–15m raise when the requirement is collateral- or working-capital-led rather than cash-flow-led: a receivables book to monetise (invoice finance), a hard-asset base to fund or refinance (asset finance against plant, vehicles, equipment), or a combination of debtors plus fixed assets and property that an ABL structure can wrap — typically around an MBO/MBI, bolt-on acquisition, or a restructuring where availability is driven by security coverage. For asset-rich lower-mid-market borrowers (manufacturing, distribution, haulage, construction, wholesale), it offers a clearing-bank-style secured solution with specialist appetite and intermediary access.
Where they are not the fit
Aldermore is not a cash-flow or EBITDA-leverage lender, so it is the wrong counterparty for unsecured term debt, sponsor-style unitranche, or growth-leverage against earnings where tangible collateral is thin — for example asset-light services, software or early-stage businesses seeking a multiple-of-EBITDA facility. Its lending is secured and availability is collateral-driven; borrowers needing structural flexibility, mezzanine, or quasi-equity sit better with a private credit fund or a unitranche provider. Facility scale is also oriented to SME ABL and asset finance rather than large bespoke leveraged tickets.
On the record
Aldermore was founded in 2009 and is headquartered in Reading, Berkshire; it is a UK retail and commercial bank serving SMEs and personal customers.
Aldermore has been owned by South Africa's FirstRand Group since 2018, which acquired it for approximately £1.1 billion (completion March 2018).
Aldermore Bank Plc is on the FCA Financial Services Register under firm reference number 204503.
Aldermore's Asset Based Lending provides funding against the value of multiple business assets including debtors, plant and machinery, inventory and property, and is positioned for larger companies funding expansion, MBOs/MBIs, mergers and acquisitions, growth and restructuring.
Aldermore's invoice finance provides immediate access to up to 90% of the value of outstanding invoices as working capital.
Aldermore's asset finance comprises hire purchase, finance and operating lease, and refinance, across sectors including construction, transport, agriculture and energy/infrastructure.
For the year ended 30 June 2024, Aldermore reported total customer lending of £15.3 billion and profit before tax of £253.1 million, operating through Residential Mortgages, SME Commercial Mortgages, Asset Finance and Invoice Finance segments.
This profile is a curated reference note drawn from public sources, not financial advice or a recommendation. Appetite and terms change; a lender's fit for a given credit is established by approaching it, not inferred from a page.