Atom Bank has cut rates on its line of secured commercial loans by up to 17 basis points (basis points). The change comes after the Bank of England raised its base interest rate to 0.5% last week, the second increase in as many months. The Atom Bank rate is a substantial discount, which makes the bank’s offer very competitive in the market.
Atom bank, which recently reached £1bn in balance sheet loans to SMEs, is now offering rates of 3-5% on the vast majority of business loans over £2m – the cheapest since before the Covid pandemic.
The price reduction comes after the relaunch of their standard secured business loan range in January, which offers variable and fixed rate loans between £2m and £5m, alongside their pre-existing loans backed by the Recovery Loan Scheme (RLS ), which provides SMEs with access to funds as they recover from the impact of the pandemic.
Atom Bank has cut rates on its entire range of secured business loans, including fixed rate products. The range of fixed rates allows businesses to fix their rate for up to 6 years, providing peace of mind with recent (and possible future) increases in the Bank of England’s base rate.
Paula Mercer, Head of Loans at Atom bank, said, “At Atom bank, we are delighted to be able to offer businesses market-leading secured loans at a competitive rate to encourage the growth and expansion necessary for their continued success. After the eventful year that has been 2021, it is essential that SMEs have all possible opportunities to operate their business to its full potential in 2022.”