"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"
- Tom Renwick - Atom bank
Atom bank has reduced the minimum loan size across its commercial mortgage range in response to rising demand from brokers and small business customers.
The change means SMEs can now borrow from £200,000, widening access to funding for smaller commercial transactions. The bank said the move supports its aim of improving finance options for UK small businesses.
The decision follows research carried out among broker partners and their SME clients. Most brokers surveyed reported that more than a quarter of enquiries relate to smaller loan amounts. Many also indicated that limited choice remains a challenge in this segment of the market.
For example, brokers said that with high street lenders it is often difficult to secure lending below £250,000 unless the client brings significant ancillary business or already has a relationship manager in place. This has left many smaller borrowers with fewer viable funding routes.
The research highlighted three consistent themes from brokers:
strong demand for loans below £250,000
limited availability of suitable products in this bracket
reliance on existing banking relationships to unlock smaller facilities
Ongoing enhancements
The revised minimum loan size forms part of a wider series of product changes introduced by the bank. Earlier this month, Atom bank reduced rates across its range by up to 0.62% and introduced a 0.25% rate discount for cases where the debt service coverage or interest coverage ratio reached 200%.
Atom bank offers bespoke pricing to business borrowers based on their individual circumstances. Brokers can use the bank’s Quick Quote tool to generate an indicative quote through its online portal.
Tom Renwick, head of business lending at Atom bank (pictured), said: “Brokers have clearly signalled 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.”
The bank said it expects the lower threshold to help brokers place a broader range of cases while giving smaller firms access to commercial mortgage products that were previously out of reach.
