Atom bank has reduced the minimum loan size for its commercial mortgage range to meet growing demand from brokers and continue in its mission to support the UK’s small businesses.
The move means SMEs can now borrow from £200,000, widening access to funding for smaller commercial deals.
The reduction follows research carried out by Atom bank into the level of appetite for smaller loans among broker partners and their SME clients. The majority of brokers polled reported that upwards of a quarter of enquiries came from those looking for smaller loans, while most brokers also suggested there is a lack of options within these loan brackets.
For example, brokers stated that with high street lenders, it’s often difficult to secure lending of below £250,000 unless the client has significant ancillary business or an existing relationship manager.
Ongoing enhancements
This is the latest product enhancement from the bank, as earlier this month it slashed rates across its range by up to 0.62%, as well as introducing a 0.25% rate discount for cases where there was a debt service coverage or interest coverage ratio of 200%.
Atom bank provides business borrowers with bespoke pricing, based on their specific circumstances. The Quick Quote tool on the Atom bank portal can be used to obtain a swift indicative quote.
Tom Renwick, Head of Business Lending at Atom bank, commented:
“Brokers have clearly signaled that the small-loan market lacks viable options, and we have taken direct action to fill that gap. While larger institutions often make these smaller deals difficult to access without significant ancillary business, Atom bank is committed to widening the path to funding for all SMEs. This reduction in our minimum loan size is part of our broader mission to constantly refine our commercial proposition - whether through rate reductions, bespoke pricing, or improved criteria - ensuring we deliver both value and efficiency to our partners and their clients.”
