A MOBILE bank is “sending a clear sign” to small businesses after agreeing a £30m deal.

Atom Bank is being supported by British Business Bank Investments (BBBIL) in its expansion.

The cash drive comes just weeks after the challenger bank revealed an £83m funding round, which took its total equity capital beyond £200m.

Bosses say the BBBIL backing will provide Atom, based in Aykley Heads, on the outskirts of Durham City, with greater scope to lend to UK corporates and smaller companies.

They added it will also give the bank, which has no plans to open high street branches, the opportunity to draw on additional capital as it grows.

Anthony Thomson, founder and chairman, said the deal represents a real fillip for the lender, adding that by partnering with BBBIL, the commercial arm of the British Business Bank, Atom is sending a real message to the market.

He said: “Access to such capital at an early stage of the growth cycle is rare and we are extremely pleased to be gaining this support from BBBIL.

“Together with the British Business Bank, we are sending a clear sign - we are here to support UK small and medium-sized companies.

“This facility provides us with tremendous flexibility.

“Like all banks, we are actively managing our capital structure and having access to such capital at this stage helps support our growth and is a great result for Atom, its shareholders and customers.”

Atom bills itself as the UK’s first digital-only bank, offering services such as savings accounts and mortgages via apps for customers’ mobile phones, tablets and laptops.

Its £30m facility will be made under BBBIL’s Investment Programme, which officials say has so far committed more than £580m to providers of finance to smaller firms.

Catherine Lewis La Torre, BBBIL chief executive, added: “Our investment in Atom demonstrates our commitment to increasing the diversity of small business finance by supporting recently-licensed and ambitious challenger banks.

“We have seen challenger banks becoming an increasingly important source of smaller business funding and we believe a committed regulatory capital facility will not only support Atom’s growth, but will also drive the bank’s ability to lend.”

Earlier this year, Atom revealed musician Will.i.am had become the lender’s first strategic board advisor, with bosses saying he will support the lender’s ongoing use of technology in the banking market.