Atom bank has delivered a £6.12m commercial loan to support farm diversification at a South Wales business that has moved from dairy farming into hospitality and leisure.
The enterprise, formerly a traditional dairy farm, has added four ventures over the past decade: glamping accommodation, an on-site bistro, trampoline and soft play areas, and an event venue. It employs 100 people, making it one of the largest employers in its area, and sought funding to continue its growth, including the completion of a dedicated wedding venue.
Atom secured the farm diversification case against competition from high street lenders, setting the facility at 65% LTV on an interest-only basis with flexible terms.
James Weaver, commercial manager at Watts Commercial Finance, introduced the case. He cited Atom’s pragmatic handling of a late issue with the insurance cover, which could have derailed the deal with another lender, as well as its ability to make commercial decisions quickly. The client felt Atom had gone above and beyond in supporting them, Weaver noted.
“SMEs are the lifeblood of the UK economy, and often have great plans for the future, but they can only achieve them with the right support,” said Karen McGrath, senior commercial business development manager at Atom bank (pictured). “We understand that ambition, and bring a challenger mentality to cases like these.”
“In this instance, the business has already shown it can diversify successfully into a range of different areas, building on its history as a farm to develop a holiday business, bistro and event hosting, all the while establishing itself as a significant employer in the local area.
By focusing on ways we could make the deal work, rather than potential sticking points, we have been able to provide an outstanding family-run business with the financial base it needs to reach the next level.”
“The borrower is a strong local business, with great ambitions for the future, and Atom bank recognised that potential from the outset,” Weaver explained.
“The challenger mentality employed by Atom made a big difference here - the bank was pragmatic in how it handled the case, and in arranging the funding package so that the borrower has time to allocate the funds as they see fit.”
“High street lenders can be much more restrictive when it comes to the terms and sectors they will consider for interest-only lending, potentially limiting borrowers’ ability to pursue their plans. Clients like these want the flexibility to continue growing their businesses, and working with Atom bank gives them the opportunity to do just that.”
“Atom’s process removes a lot of the friction up front, and the bank’s back end is slicker than most, which is why we are always happy to work with them. Deals like this are never straightforward, but we have a great relationship with Karen, and the team really went over and above to deliver for the client. Without that attitude and flexibility, deals can easily fall through, but Atom’s approach has paid dividends and the client is delighted.”
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