OakNorth Bank
A UK challenger bank that underwrites bespoke, growth-oriented term debt for established, profitable SMEs and mid-market companies, with facilities from roughly £1m upward.
What they do
OakNorth Bank is a balance-sheet lender (full UK banking licence since 2015) that provides structured, bespoke debt to established, trading UK businesses rather than start-ups. It states facilities start at a £1m minimum and run "from £1 million to tens of millions," covering working-capital, acquisition and management-buyout finance, property investment and development, NAV financing, and amortising or non-amortising term structures. Its differentiator is a forward-looking, sector-specific credit approach (built on its own credit-analysis technology) that weighs forecasts and management quality alongside historical financials, aimed at established borrowers typically in the £1m–£100m turnover range. It lends across most sectors — care, education, hospitality, leisure, healthcare, manufacturing, real estate, professional and financial services — excluding gambling, weapons and oil and gas.
Where they fit in a lower-mid-market raise
OakNorth fits at the upper end of a 3–15m raise where the borrower is established, profitable (or on a credible path), and wants a single bilateral relationship-banking counterparty rather than a club or fund. It is well-suited to growth, acquisition/MBO and property-backed situations where a CFO values a fast, partnered underwrite and a credit team willing to engage with forecasts and sector dynamics rather than run a templated scorecard. Its bilateral, balance-sheet model and stated £1m floor mean it can move quickly and structure around the specific cash flows of a deal.
Where they are not the fit
OakNorth is not the counterparty for early-stage, pre-profit or turnaround borrowers, nor for situations needing deep subordinated or mezzanine flexibility — its profile is senior, cash-flow and asset-backed lending to companies that already trade well. Sub-£1m needs fall below its stated minimum, and it screens out gambling, weapons and oil and gas entirely. Borrowers wanting highly leveraged, covenant-light structures or a syndicate of capital providers will generally be better served elsewhere; OakNorth's strength is a disciplined bilateral relationship, not maximal leverage.
Published terms
- Pricing
- Not published
- Speed to terms
- Fast - 'days and weeks rather than months'; initial offers very quick, final funding in weeks. ~2-3 weeks typical
- Sponsored or sponsorless
- Both - explicitly works with private equity sponsors, debt funds AND owner-managed or management-led MBO/MBIs
- Where they lend
- UK-wide; strong regional footprint (Manchester or North West team, >£250m lent in NW over two years). Also large US book (~40% of 2025 originations)
- How they decide
- Committee-based, but the borrower is invited to present DIRECTLY to the Credit Committee (signature feature). Lending directors underwrite the business and cashflow, not just collateral. Delegated authority not published
- Security
- A debenture over the company
- Covenants
- Maintenance covenants, tested every period
- Personal guarantee
- Typically required
As published by the lender and last reviewed July 2026. Terms quoted on a deal are set by the credit, not by a published band.
What rules a deal out
Stated limits, taken from OakNorth Bank’s own published criteria. A limit is where a lender starts from, not where it always ends: several of these move on a strong enough credit.
- No appetite in adult, crypto, gambling or weapons
How they sit against the category
- Its published ceiling of £50m is among the 4 highest of the 42 challenger and specialist banks here.
- Like 24 of the 42, it publishes no indicative price — a margin comes from a conversation, not a page.
Counted across the 42 challenger & specialist banks in this directory, on what each one publishes. What a lender discloses and what it will do are different things.
Questions this page answers
How large a facility does OakNorth Bank write?
Published facilities run £1m to £50m. A band is what a lender states it will do, not what it will do on a given credit.
Does OakNorth Bank require a personal guarantee?
On OakNorth Bank's published terms, a personal guarantee is typically required. What a lender asks for on a given credit is settled in the documents, not by a published stance.
How quickly does OakNorth Bank move?
Fast - 'days and weeks rather than months'; initial offers very quick, final funding in weeks. ~2-3 weeks typical. Published timetables describe a clean case; anything unusual in the security or the structure adds to them.
Does OakNorth Bank lend to companies without a private-equity sponsor?
Yes. OakNorth Bank lends to owner-managed and sponsor-backed borrowers alike, so a company with no private-equity backer is not out of scope on that ground.
Where does OakNorth Bank lend?
UK-wide; strong regional footprint (Manchester or North West team, >£250m lent in NW over two years). Also large US book (~40% of 2025 originations).
What covenants does OakNorth Bank set?
Maintenance covenants, tested every period. A covenant package is negotiated on the facility; the published style is where the negotiation starts.
On the record
OakNorth Bank plc holds a full UK banking licence, granted by the PRA and FCA in March 2015; it is authorised by the PRA and regulated by the FCA and PRA (firm reference number 629564).
OakNorth Bank plc is registered at Companies House under company number 08595042 (incorporated 3 July 2013).
OakNorth states a minimum facility of £1 million, with bespoke business loans ranging 'from £1 million to tens of millions.'
OakNorth works with almost any industry sector except gambling, weapons and oil and gas, and lists care, education, hospitality, healthcare, manufacturing, real estate and professional/financial services among its focus areas.
OakNorth was founded by Rishi Khosla and Joel Perlman and provides flexible debt financing to scaling businesses, typically those with £1m–£100m turnover; it has lent over £10bn to UK businesses since 2015.
OakNorth's offered structures include working capital, acquisition finance, management buyouts, NAV financing and both amortising and non-amortising loans.
Sources: oaknorth.co.uk
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.