Atom bank has helped a Birmingham hotel save £145,000 a year by refinancing a £1.6m commercial mortgage under the government’s Growth Guarantee Scheme.

The scheme, which replaced the Recovery Loan Scheme, is designed to help viable businesses secure finance for investment and growth. Atom bank has been a regular participant in both initiatives, maintaining its focus on supporting smaller and often underserved firms.

The borrower, a Best Western-branded hotel, sought to consolidate its existing facility with Atom – originally completed under the Coronavirus Business Interruption Loan Scheme – alongside other high-cost credit. After exploring options with other lenders, the hotel found Atom’s terms to be the most competitive.

During the underwriting process, the bank reduced the margin to 2.65% above the Bank of England base rate, delivering substantial annual savings.

Remaining with Atom also saved the borrower about £15,000 in legal costs, while a broker-led valuation process meant a recent valuation could be reused, avoiding further expense and delays.

Atom also provided an additional £600,000 as part of the refinancing, enabling the hotel to clear other debts and refurbish more than 20 rooms.

Karen McGrath, regional business development manager at Atom bank, said: “This case is a great example of why Atom bank has been such a big supporter, and participant in, schemes like the Growth Guarantee Scheme.

“We are passionate about supporting British businesses, providing them with the funding they need in order to achieve their ambitions. Our funding package has saved the borrower a substantial sum, allowing them to complete the refurbishment of the property, and all in a fraction of the time possible with other lenders.

“It also demonstrates how measures like broker-led valuations are providing tangible financial and time savings to borrowers.

“Atom bank consistently acts on feedback from brokers to ensure that our service proposition goes above and beyond, allowing us to deliver for our clients.”

Andrea Maddalena, commercial specialist at SFC, added: “This case went from application to completion in a matter of weeks, which could only happen because everyone involved really pulled together.

“The service from Atom bank was outstanding – I’ve worked with Karen on many cases in the past, and can vouch for the benefits of having a strong relationship with quality BDMs.

“My client is saving a significant amount each year because of this package – I know that Atom bank will always go the extra mile to look after my clients.”