Atom bank ‘goodwill’ criteria crucial in supporting pub purchase

16 May 2025

Atom bank, the UK’s top rated bank on Trustpilot, has delivered a £660,000 loan to fund the purchase of pub premises in a case reliant on the bank’s ability to consider ‘goodwill’ in place of a cash contribution.

The buyer was already the sitting tenant at the Cow Shed, a bistro pub in Wolverhampton, and had been given an opportunity to purchase the freehold by the brewery, Marstons. This represented a golden opportunity that may not have come around again for some time if missed, as taking on the freehold would mean the buyer could make improvements to the premises and look to capitalise on the opportunity of being free of tie.

Ashley Clements, Associate Director of Christie Finance - the broker on the case - approached a host of commercial lenders, but the lack of a deposit proved a sticking point for all of them. Atom bank stood out because of its willingness to take into account the goodwill of the business in place of a cash contribution, in this case a percentage of the £1 million market value of the pub.

On this basis, Atom bank was able to provide a loan of £663,000, enough to cover the full purchase price of the pub plus some additional funds for renovation. The loan was provided at a variable rate of 2.58% plus base rate and at an LTV of 66%.

The facility is backed by the Growth Guarantee Scheme (GGS), the successor to the Recovery Loan Scheme (RLS). Through the GGS, businesses are able to borrow up to £2 million for purposes such as business investment, refinancing an existing debt, or for cash flow purposes. Atom bank was a significant participant in the RLS, providing funding worth more than £240 million, and was accredited for the GGS ahead of the launch of the scheme.

This case involved a tight timeline, but Ashley was able to progress quickly despite the complexities involved. Sophie Morton from Lawrence Stephens, the solicitor representing Atom on the case, played an integral role in ensuring completion.

Spencer Ford, Regional Business Development Manager at Atom bank, added:

“This was a case with a tight timeline, and getting it over the line was only possible if all parties were fully engaged. The fact that we managed to do so in a matter of weeks is incredibly gratifying, and testament to the professionals involved.

“Atom bank stands apart from rival lenders in this space because of our ability to consider goodwill contributions. That flexibility opens up more opportunities for businesses to take the next step and set themselves up for success in the future. As champions of British SMEs, we want to play our part in helping them unlock their potential.

“Atom bank was a significant participant in the Recovery Loan Scheme, and we have supported some fantastic businesses through its successor, the Growth Guarantee Scheme. These schemes are a valuable way to deliver crucial support to SMEs, something which we are committed to doing at Atom bank.”

Ashley Clements, Associate Director of Christie Financial, commented:

“I have worked with Atom bank and Spencer many times before, so I was confident they would be able to support the client in this case, despite getting a firm “no” from many others. It’s so important to be able to work with a lender who can quickly establish whether they can support a case, and then also deliver the terms swiftly, even when cases are perhaps more complex.

“Atom bank has a really clearly defined credit policy, which means we know where we stand - other lenders might rely more heavily on underwriter judgement, which often creates more uncertainty.

“The flexibility in Atom’s approach enabled our now mutual client to purchase the freehold of the pub and be in full control of their own destiny, giving them the freedom to choose multiple suppliers and operate the business in a way that they feel fit.”