Atom bank has reduced the minimum loan size to £100,000 for its commercial mortgage range to meet growing demand from brokers and continue in its mission to support the UK’s small businesses.
The reduction follows February’s minimum loan size reduction to £200,000 and is a direct reaction to the appetite shown from brokers in this area of the market.
Meeting SME and broker need
Many high street lenders will not lend below £250,000 unless the client has significant ancillary business or an existing relationship manager. Atom aims to use its growing operational efficiencies to fill a void which currently locks many UK SMEs out of much needed funding. By reducing the minimum loan size to £100,000, Atom is plugging a significant gap - with 53% of brokers on the Atom panel reporting at least a quarter of their client enquiries fall within the £100,000–£250,000 bracket.
Reduced rates for new applications by up to 0.94%
Atom has also made some significant changes to its pricing structure designed to enhance the competitiveness of lending between 50-65% LTV. Across the range, this sees reduced rates for new applications of 0.25% for trading businesses and 0.34% for commercial investment cases on average.
The new rates are effective immediately, and will apply to all new qualifying applications received from today (13th April 2026).
Operational improvements creating better outcomes
This change has been made possible following greater operational efficiencies being achieved by the bank via ongoing continuous improvement. Atom has introduced a succession of strategic enhancements to the broker Portal and back office processes which are allowing the bank to step up in this area.
Not only are the changes providing commercial brokers with a faster experience, but improved back office efficiency has freed up operational capacity, and by automating much of the lending process, Atom is able to expand its support for SMEs at even lower loan amounts while ensuring it maintains high service levels.
These strategic enhancements have already significantly accelerated Atom bank's service times. The bank has consistently maintained its impressive application-to-Agreement in Principle (AIP) speed, which stands at one working day - and is often achieved on the same day. Furthermore, the average time from AIP-to-offer now averages just five working days.
Atom bank has made a host of improvements to its proposition recently, including reducing rates and introducing a rate discount for high quality cases with a debt service coverage or interest coverage ratio of at least 200%.
Tom Renwick, Head of Business Lending at Atom bank, said:
“Since our reduction to £200,000 earlier in the year, the feedback from brokers and SMEs has been loud and clear, indicating a specific need to reduce this even further. We know that there are very few other lenders supporting businesses at these lower loan sizes, and as a start-up and challenger to the high street ourselves, we want to be able to make a difference where it matters.
“Our continuous focus on operational efficiencies, driven by enhancements to our digital processes, has significantly accelerated our service. Crucially, by automating parts of the lending process, we have freed up capacity that allows us to expand our support for SMEs while ensuring we continue to provide the service we are becoming known for.”
