In a significant move for small and medium-sized enterprises (SMEs), a digital challenger bank is offering a cashback deal described as market-leading, with no cap on rewards. Allica Bank, which launched its Business Rewards Account, allows companies to earn real money back on their everyday spending, with the potential for higher returns the more they spend.
A Breakthrough in Business Banking Rewards
While many high street banks offer cashback incentives, they frequently impose strict monthly or annual limits, capping the potential benefit. Allica's proposition removes this barrier entirely. The structure is straightforward: businesses earn 1% cashback on the first £10,000 of card spending each month. Crucially, there is no upper limit on this initial tier.
For companies with higher expenditure, the rewards become even more attractive. Spending beyond £10,000 in a calendar month qualifies for an increased rate of 1.5% cashback on the excess. This creates a powerful incentive for businesses with substantial operational costs to channel their spending through the account.
Putting the Cashback into Concrete Terms
To illustrate the potential, a business with monthly outgoings of £12,000 would receive £100 back on its first £10,000 (at 1%). The remaining £2,000 would earn £30 at the higher 1.5% rate, resulting in a total monthly cashback of £130.
The returns scale considerably. A firm spending £18,000 monthly would secure £220 in cashback. For high-turnover businesses, such as those in sectors with tight margins, the rewards are substantial. A company spending £50,000 in a month would earn a notable £700 in cashback.
More Than Just Cashback: A Competitive Package
Allica's offering, detailed in January 2026, extends beyond spending rewards. The Business Rewards Account also provides competitive interest of around 3.8% AER on deposits, helping idle business capital grow. The account has no monthly fees and includes free Faster Payments and BACS transactions.
A key feature for many SMEs is the provision of a dedicated relationship manager, offering personalised support often absent from purely digital platforms. The bank also promotes seamless integration with major accounting software like Sage and Xero, simplifying financial management.
These combined perks are positioning Allica as a formidable player in the UK's business banking scene, appealing directly to SMEs seeking to maximise their financial efficiency without engaging in complex investments.
The Wider Digital Banking Trend
Allica's model exemplifies how modern digital banks are differentiating themselves by bundling high-value rewards, competitive rates, and user-friendly technology. This approach is increasingly compelling for business owners looking for an alternative to traditional institutions, where such generous, uncapped cashback deals are rare.
For UK SMEs, this represents a tangible opportunity to make their business expenditure work harder, directly boosting the bottom line through a straightforward, fee-free banking relationship.
