Atom bank has reduced the minimum loan size by £50,000 for its commercial mortgage range.

The move means SMEs can now borrow from £200,000 instead of £250,000, widening access to funding for smaller commercial deals.

The reduction follows research carried out by Atom bank into the level of appetite for smaller loans among broker partners and their SME clients.

The majority of brokers polled reported that upwards of a quarter of enquiries came from those looking for smaller loans, while most brokers also suggested there is a lack of options within these loan brackets.

Atom bank head of business lending Tom Renwick says: “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.”