Bridging & Commercial Supplement — Changing banking for good

CHANGING BANKING FOR GOOD

In association with

PHARMACIES SUPPORTING

with our tailored commercial mortgages

Whether your client is just starting out or expanding their business - we want to help

We’ll consider first-time buyers in the pharmaceutical sector

Maximum LTV against NHS goodwill of 85%*

Maximum LTV for property element of 95%*

Maximum amortisation term of 20 years (or limited by lease)

Bespoke pricing, treating each business on their own merits

Scan the QR code and head to the portal to generate a quote, or call us on 0333 399 0060

*Subject to status and assessment of your application.

SUPPORTING SME CLIENTS IS NOT ALWAYS AN EASY TASK FOR MANY COMMERCIAL FINANCE BROKERS.

Our intermediary partners tell us that although the high-street banks have not entirely ‘shut up shop’ with respect to commercial mortgage clients, their appetites have certainly been curtailed over the past 24 months.

Instead, these banks are opting to focus on larger, ‘more profitable’ corporates who are looking to open sizable facilities or borrow at low LTVs.

As a result, SMEs are increasingly excluded, despite their excellent growth prospects and a desire to make use of external funding to accelerate their evolution. These businesses have ambitious plans for the future, with leaders who understand where and how they are going to get there. However, the black-and-white attitude of high-street banks means they risk falling through the cracks.

Atom bank is determined to work differently and provide the support these firms require. We recognise that the needs of smaller businesses are distinct and different from those of larger firms.

We understand that SMEs are the lifeblood of the UK economy and are determined to get them the support they need.

What’s more, we know the importance of working closely alongside brokers in championing these businesses—our relationship with brokers is symbiotic and we win and lose together.

At Atom bank, we have developed products and criteria that allow us to work with SMEs within a wider range of sectors and across a broader spectrum of LTVs. Our model of delivering bespoke pricing means that businesses are considered on their own merit, and provided with funding based on their own needs rather than an off-theshelf product.

We have worked hard to improve processes that allows Atom bank to deliver funding to SMEs at speed, offering certainty and transparency to brokers and their clients alike.

Central to this have been the changes made to the way we use technology. We’ve made over 170 updates to our broker portal in the last year alone, which have improved the speed of deal processing by 61%. Many of them have been implemented following direct feedback from brokers, to ensure that the system works based on their needs.

The success of Atom bank’s commercial lending has only been possible because of the way we work with our intermediary partners. We recognise the crucial role they play in supporting SME clients, and we are determined to pinpoint areas where we can strengthen that relationship further. By working together, we can ensure that greater numbers of SMEs are getting the funding they need to grow.

Tom Renwick Head of Business Banking at Atom bank

PRODUCT INFORMATION

We offer both variable and fixed rate commercial mortgages for businesses.

£250,000

Minimum loan

£10m

Maximum loan (subject to criteria)

Fixed or Variable

Repayment type

2-7 Years

Commitment term

You’ll find that our lending criteria are easy to follow, our pricing is competitive and our decisioning process is fair and transparent. We offer both commercial owner-occupied and property investment loans.

1.5%

Procuration fee 2%

Arrangement fee

75% LTV

Maximum LTV (subject to criteria)

Capital & interest-only

Options available

2-25 Years

Amortisation term

Borrower types: Limited companies, Limited Liability Partnerships (LLPs), partnerships and sole traders

WHY WORK WITH US

We use a blend of technology and human expertise to support UK SMEs access commercial property finance. We are always striving to make the process of borrowing faster, easier and better value for you and your clients.

Excellent value for you and competitive rates for your customers. We have a 2% arrangement fee, with 1.5% of that going to the broker. Paired with our transparent, riskbased pricing, it’s easy to see why growing numbers of commercial brokers trust us to deliver value to them and their clients.

Easy to apply on behalf of your clients using our Portal. From providing the ability to create instant, indicative quotes with our Quick Quote tool, to constantly improving our broker journey and processes, we’re committed to delivering a best-in-class broker experience, to make applying on behalf of your clients as easy as possible.

We work exclusively with brokers and support them. We recognise the incredibly important role brokers play in commercial finance, and that’s why we only generate business through you. When you place your application with us you’ll also be supported by our dedicated team of regional and telephone BDMs.

Flexible criteria and dedicated underwriters. We want to accommodate a wide range of businesses at different stages of growth, which is why our lending criteria are designed to be flexible, giving us room to consider the specific sector and business performance. Our underwriting team recognise each business is different and will look at the merits of each application on an individual basis.

PUTTING BROKERS IN THE DRIVING SEAT

One of the pressure points in a commercial mortgage application which can lead to delays is the valuation. Brokers will know only too well that cases which seem to be progressing smoothly can grind to a halt once it reaches the valuation stage, leading to frustration for the client.

In order to tackle this, we have put brokers in greater control over the instruction of the valuation. Intermediaries can instruct a valuation at any point up to the issuing of an approval in principle, and it is delivering dramatic improvements to the application timescales.

On average brokers have been able to slash the time from offer to completion by at least two weeks, though in some cases this reduction has been as much as seven weeks, an extraordinary improvement.

Being able to instruct the valuation before the application has been submitted or underwritten means greater certainty for all involved, since it removes the risk of the loan offer having to be reassessed or reduced should the valuation come in lower than expected.

Thanks to this, brokers and clients alike have a better understanding of where they stand and the loan offer can be made available to them as early as possible, thus offering the sort of transparency that is so highly valued, yet rarely delivered by lenders in this sector. The flexibility that broker-led valuations deliver has received a really strong response from brokers who can see how this can work for them and their clients, providing

them with the opportunity to even instruct a valuation before the application has been submitted in the first place.

Further flexibility is offered in the form of the choice of which of our valuation panels— Method Valuation or VAS Group— are utilised. Brokers will always have a preference when it comes to valuation firms based on their own experiences, so delivering a range of options is an excellent way to further support our intermediary partners.

Working together

The decision to introduce broker-led valuations came as a result of feedback from intermediaries, who recognised the improved speed this could deliver for them and their clients.

In addition, Atom bank has established a dedicated business banking service team who are on hand to provide brokers with the support required to offer help with queries and ensure that cases progress. Access is also available to our team of underwriters, so brokers can talk through cases and build a closer working relationship.

Across the business, we value our intermediary partners and want to not only get their take on how products and processes can be improved, but also ensure that there is a good support structure in place to help their cases reach a successful conclusion.

Transparency and trust

We believe that transparency is crucial for a lender.

Intermediaries tell us that they want consistency from commercial lenders, predictability around what sort of cases can be taken on, and the timescales they can expect in getting that funding in place. By being open about our decisionmaking process, brokers are put in a stronger position. That transparency means intermediaries are better able to explain to the client what will happen after the application is submitted, and manage their expectations. Knowing how the decision is made and how long that process will take builds trust among brokers and borrowers.

David Castling Head of Intermediary Distribution at Atom bank

THE NEED FOR SPEED

A CRUCIAL, YET OFTEN OVERLOOKED, ELEMENT OF LENDING TO SMES IS SPEED.

Business owners don’t tend to raise funds for some distant, far-off project. In all likelihood, the borrower needs the money now and wants to get on with their projects and plans.

It is vital for lenders to be able to not only deliver a swift answer, but also provide the funding itself at pace.

While we have been well known for the value of our commercial lending products, Atom bank has prioritised improving the delivery speed of finance to our SME clients, working on identifying the changes we can make which will have a tangible difference on the timescales involved in providing that funding.

Technology has a significant role to play here, taking on some of the heavy lifting involved with commercial lending. While it’s true that commercial cases can be more complex than residential ones, that does not mean that technology cannot be utilised sensibly and productively.

For example, our Quick Quote tool means brokers are able to provide their clients with an initial estimated quote for what their funding will likely cost, ahead of a full application. Intermediaries can set expectations for their client around the costs within a matter of minutes, rather than having to contact the business development team to discuss the case, thus ensuring a much smoother experience for all.

We’ve also established a broker portal, which intermediaries can use for uploading supporting details. The Portal steers the process, making sure that all relevant documents are provided from the outset, and that the right people see the application as quickly as possible.

The Portal has been through a transformative period, with more than 170 changes made over the last year, based on feedback from brokers, to ensure it works as efficiently as possible. This has been combined with a streamlined process to enable cases to be handled as quickly as possible, and deliver tangible results in the process.

As a result, we have made huge strides in how quickly we can respond to commercial mortgage applications, with fully packaged applications receiving a DIP within one working day on average, while offers are provided within 14 working days.

Treating your clients as individuals

One of the frustrations we often hear from brokers looking for SME client funding is the lack of a personal touch. It’s all too common for lenders to treat businesses as if they should all fit into a specific bucket, with identical requirements.

At Atom bank, we believe in a different approach by utilising bespoke pricing for our commercial customers. After getting a better insight into the individual business, we are able to put together a funding package at a price based on their actual circumstances, giving them the best chance of success in the future. It also means that we can offer funding to clients turned down by high-street lenders, which often don’t have the appetite to get under the bonnet of the business.

Delivering what SMEs need

Atom bank is committed to supporting the UK’s SMEs with their borrowing needs, but doing so effectively means understanding precisely what these firms require.

Our conversations with brokers and their clients have made clear that there is a real gap in the market for higher LTV lending on large commercial mortgages, and so we’ve revamped our range to address that.

As a result, Atom bank will now lend up to a maximum of 75% LTV on commercial mortgages of up to £5m. Previously, loans above £1m were capped at 60% LTV.

By expanding our range in this way, we are better positioned to support a greater range of trading entities and commercial property investors. We know that there is an appetite among SMEs for these loans, but until now, they had few options. We’re determined to address that and provide far more choice where it’s needed.

CASE STUDY BILL RAWLES CLASSIC CARS

A classic cars restoration and maintenance specialist based in Hampshire

THE STORY

Bill Rawles Classic Cars is a secondgeneration family business. Bill, the founder, has 35 years’ experience in the industry and manages the workshop side, while his son Jack manages the business side of the operation.

Refinancing was sought to exit an existing commercial mortgage for a new fixed rate product, after several interest rate increases made monthly repayments unaffordable. The original funds were used to purchase a new, larger site on which to trade, also offering the potential of further development. However, the firm was rejected by a host of high-street lenders after being incorrectly classified as ‘motor trade’ rather than identifying its individual merits as a trading business.

Loan type: Fixed rate loan

Loan value: £1.06m

Rate: Fixed at 5.46% for 5 years

LTV: 56%

Term: 5 years with 25 year repayment profile

HOW DID WE HELP?

Following an introduction by Tamara Renshaw, commercial finance broker at Productivity Finance, we looked beyond the incorrect classification of the business by other lenders and sought to understand its true nature.

After a careful assessment of performance, business pipelines and projections, a £1,063,125 loan was agreed, representing an LTV of 56% over the site premises. The fiveyear, fixedrate facility came complete with a 25-year repayment profile.

The loan would ultimately support the generation of additional cash flow and the confidence to build a stronger platform for future growth.

TESTIMONIALS

“Atom bank is building an impressive reputation within the broker community, and this is clearly demonstrated in both its technology and the quality of its people at every stage of the transaction.

“Sector-specific credit policies should be subject to interpretation and not just viewed as black or white. That is exactly what Atom did; the lender asked a few more questions to understand the true nature of the business which others hadn’t done.

“From the initial enquiry stage through to being able to actually build a relationship with a dedicated underwriter, I found them to be highly professional, responsive and flexible in their approach, all of which culminated in the most important thing—a very happy client.”

Tamara Renshaw Commercial Finance Broker at Productivity Finance

“This is a loan that will offer us a massive amount of stability over the next five years, meaning we can now focus more of our energy on growing the business.

“As a business owner, we simply did not have the time and tenacity to manage this ourselves, so having a broker like Tamara in our corner really helped our funding journey.

“The process of refinancing with Atom through a broker was far more straightforward than our previous loan. We really appreciated the flexibility on offer, and that all-important personal touch where we could sit down with the Atom BDM and Tamara, who demonstrated a real interest and understanding of the business. I hope this marks the beginning of a long and fruitful relationship.”

Jack Rawles Sales & Marketing Director at Bill Rawles Classic Cars

ABOUT ATOM BANK

Atom bank is the UK’s first app-based bank, on a mission to make the experience of borrowing and saving faster, simpler and better value than anyone else.

The bank launched operations in April 2016, and offers award-winning mortgages and savings through its app, alongside commercial mortgages for SMEs.

Based in the north-east of England with a team of over 500 people, Atom bank is here to change banking for the better, for everyone. This means focusing on customers’ needs, delivering better value than the incumbents, providing an exceptional app-based experience and offering award-winning customer support via phone, chat, email and social channels. The bank has some of the best customer service credentials in the UK, having achieved 5-star ratings on both the iOS and Android App Stores, and on Trustpilot, while consistently delivering Net Promoter Scores (NPS) in the high 80s.

Based in Durham, Atom bank is an engaged and active member of the North East community. The region has one of the highest levels of youth unemployment in the UK and the bank is passionate about addressing the critical digital skills gap and helping develop young people and other groups that are under-represented within the industry.

As of November 2021, all employees enjoy a four-day working week after Atom introduced the policy for all employees, with no reduction in salary.

The Atom executive team are highly experienced, having built and run some of the most well-respected banks in the UK. CEO Mark Mullen has 30 years’ experience in the sector and was previously CEO at the multiaward- winning telephone and internet bank First Direct. The team is supported by a strong non-exec board, chaired by

MEET THE TEAM

Chris Storey

Chief Commercial Officer

chris.storey@atombank.co.uk

Spencer Ford

Regional BDM—Midlands & East Anglia 07922 577 135 spencer.ford@atombank.co.uk

Sarah PickardFossey

Telephone BDM—North West, Wales & Yorkshire 0333 399 0060

sarah.fossey@atombank.co.uk

Donna Reed

Intermediary Support Team Leader 0333 399 0060

donna.reed@atombank.co.uk

Jamie Fletcher

Telephone BDM—Midlands, East Anglia, North East, Scotland & Northern Ireland 0333 399 0060

jamie.fletcher@atombank.co.uk

Karen McGrath

Regional BDM—North West, Wales & Yorkshire 07921 806 461

karen.mcgrath@atombank.co.uk

David Castling

Head of Intermediary Lending 07921 806 634

david.castling@atombank.co.uk

Liam Brodie

Regional BDM—North East, Scotland & Northern Ireland 07921 806 489

liam.brodie@atombank.co.uk

Neil Findlay

Regional BDM—South of England 07921 806 492

neil.findlay@atombank.co.uk

Emma Vardy

Telephone BDM—South of England 0333 399 0060

emma.vardy@atombank.co.uk

CARE HOMES SUPPORTING

with our tailored commercial mortgages