Atom bank provides £500k CBILS loan to furniture wholesaler
19 November 2020
Atom, the UK’s first app-based bank continues to support businesses during the pandemic through the Coronavirus Business Interruption Loan Scheme (CBILS), providing a £500,000 loan to Lancashire based firm, Giatalia, so they can plan for a prosperous future despite the ongoing pandemic.
Giatalia are wholesalers of furniture to UK retailers, specialising in luxury and occasional dining furniture.
Adam Lorgat, Director of Giatalia said: “With retailers being closed, orders were postponed or cancelled until further notice as a result of COVID-19.”
“We continued to sell to the end user on a small scale for a period of time but it just wasn’t sustainable. Five members of staff were furloughed and our entire operation came to a halt.”
“It hit us quite hard. To help keep as much cash in the business as possible, overall stock was reduced by cutting back on surplus supplies, prices were cut to help liquidate stock, marketing costs were significantly lowered and I didn’t take a wage.”
Giatalia recognised the potential of a post-pandemic UK and wanted to be fully prepared for it, so will use the funding to expand and upscale. Lorgat added “CBILS was our saviour!”
“The new premises will accommodate a larger amount of stock and increase product lines for our customers. Holding greater stock naturally creates greater efficiency for retailers as they can order at short notice, which in turn means payments are received faster.”
The 12 month payment holiday element of the scheme will help provide Giatalia with stronger liquidity for that period. They will also save £34k in rental costs by moving from their previous unit – a great boost for their cash flow - as well as the fact that it allows jobs to be retained and wages paid in full.
David Castling, Director of Intermediary Lending at Atom said: “We’ve been working tirelessly this year to ensure businesses receive the support they need through CBILS.”
“We understand this is a worrying and stressful time for businesses so we’re doing what we can to help. We’re delighted that AFL Properties Limited are among our first CBILS customers and we wish them a bright and successful future.”
Atom has continued to lend outside of government schemes with secured loans and are on-track to outperform their 2020 small business lending targets.
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About Atom bank
After securing its banking license in June 2015, Atom bank launched operations in April 2016, offering market-leading Fixed Saver accounts and secured business lending for small and medium-sized enterprises (‘SMEs’).
Atom launched its first mobile mortgage product in December 2016 and has taken £1.8bn in deposits and lent over £2.4bn to small businesses and homeowners to date. Atom have also recently launched a new Instant Saver with a competitive rate, no short-term bonus, no limits on withdrawals and no minimum amount required at opening, it offers people much-needed flexibility while their cash works harder for them.
Atom are a mobile only and customer first bank. Based in the North East of England with a team of over 400 people, they’re here to do the right thing by their customers. To stand up against the big banks, to save customers time, offer the best products and to offer them genuine value, empowering them to take control of their finances. At the heart of the bank is the app, with an award-winning customer support team on hand to help with any queries through phone, chat, email and social media.
Atom is an engaged and active part of the North East Community and in 2017 announced a four year STEM partnership with the Prince’s Trust in North East England.
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 multi- award-winning telephone and internet bank first direct. The team are supported by a strong non-exec board, chaired by Bridget Rosewell CBE.