Atom bank has reduced the minimum loan size across its commercial mortgage range to £200,000, in a move designed to address growing demand from brokers for smaller ticket lending.

The change widens access to funding for SMEs seeking more modest borrowing levels, with the bank previously operating a higher entry point.

The lender said the decision follows research among its broker partners, which indicated that a significant proportion of enquiries relate to smaller loans.

According to Atom bank, the majority of brokers polled reported that more than a quarter of enquiries came from clients looking to borrow lower amounts, while many also suggested that there are limited options available within this bracket.

Brokers highlighted particular challenges with some high street lenders, where securing facilities below £250,000 can prove difficult without substantial ancillary business or an established relationship manager.

ONGOING PRODUCT ADJUSTMENTS

The move comes shortly after the bank cut rates across its commercial range by up to 0.62%. It also introduced a 0.25% discount for cases demonstrating a debt service coverage or interest coverage ratio of 200%.

Atom bank offers bespoke pricing for business borrowers based on individual circumstances. Brokers can obtain an indicative quote via the lender’s Quick Quote tool on its portal.

Tom Renwick, head of business lending at Atom bank, said: “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.”