Atom bank has provided a £640,000 commercial mortgage to a first-time buyer care home provider who was overlooked by multiple high street banks.
The borrower has a background in the care sector, having previously worked with the Care Quality Commission (CQC) to turn around underperforming care homes.
After improving profitability in four care homes, they aimed to start their own business by acquiring existing care homes that need improvement.
Broker Paul Mak, managing director of Pomegranate Commercial Finance, presented the case to several lenders, including high street banks.
Atom bank distinguished itself by considering the borrower’s experience and goodwill, despite the care home’s ‘Requires Improvement’ status with the CQC.
Other lenders failed to see past the borrower’s first-time buyer status.
Atom bank issued a £642,000 commercial mortgage at a fixed rate over five years with a loan-to-value (LTV) of 71%.
Karen McGrath (pictured), regional BDM for Atom bank, said: “This case is a prime example of how Atom bank is doing things differently and providing valuable support to both existing established businesses that are being sold and new owners in a vital sector.
“Too often viable care homes are held back by the overly prescriptive attitude of lenders, but Atom bank is committed to delivering for underserved businesses, such as first-time buyers and going concern businesses.
“It’s also testament to the value of strong relationships. We have worked closely with Paul on a host of cases in the past, so he has a great understanding of our approach, criteria and determination to support small businesses in both the care home and all SME sectors.
“He knew that we could deliver for his clients who may have been overlooked elsewhere, and we did just that.”
Mak said: “I am a big fan of Atom bank, its sensible criteria and approach to lending. While high street banks often focus on larger facilities, Atom bank is much more flexible in this sector, judging cases on their individual merits and delivering genuine support to smaller care home providers.
“In this instance, the fact that the owners of the borrower had such comprehensive experience in the industry meant it was a prime opportunity, and they were so pleased with the service that they are already planning to use Atom bank again for further purchases.”
