The change means SMEs can now borrow from £200,000, widening access to funding for smaller commercial deals.
A recent report from Atom Bank shows the level of appetite for smaller loans among broker partners and their SME clients.
Brokers said that with high street lenders, it can be difficult to secure lending below £250,000 unless a customer has “significant ancillary business or an existing relationship manager”.
Tom Renwick, head of business lending at Atom Bank, 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.”
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Earlier this year, Atom Bank said it had surpassed £1bn in commercial mortgages, adding that this showed “consistent growth” delivered by the commercial lending team.
