

Posted by Todd Davison on
Purbeck Personal Guarantee Insurance, provider of the UK’s only Personal Guarantee Insurance to SME business owners and directors has set out its Budget wish-list to the Chancellor of the Exchequer, Rishi Sunak to help struggling SMEs get through to the other side of the pandemic.
The Purbeck Personal Guarantee Insurance Budget Wishlist:
Todd Davison, MD of Purbeck Personal Guarantee Insurance said: “We know how indebted many SMEs have become during the pandemic and how much of a personal risk this is for thousands of business owners who have signed personal guarantees to get access to finance. Our analysis from a Freedom of Information request has shown CBILS loans to the value of £1.22bn were advanced in 2020 with a Personal Guarantee in place as security for the lender and the average loan backed by a personal guarantee was £766,000[i]. The measures we are suggesting could play an important part in getting SMEs and the wider economy back on its feet.”
Purbeck has been supporting SMEs in financial distress during the pandemic, offering advice, mentoring and help at the point a debt needs to be settled, by acting as a point of liaison with a lender. This support is part and parcel of insurance cover that offers protection against the risk of a Personal Guarantee being called by a lender. The insurance cover offsets any outstanding obligations called in under a Personal Guarantee following business failure. The level of cover is based on a fixed percentage of the Personal Guarantee the company director wishes to insure and this is dependent on whether the corresponding finance facility is secured or unsecured. In essence, if the business does fail, up to 80% of the loan will be settled by the insurance rather than the business owner’s home, savings and other personal assets being called on to settle the debt.
With personal guarantee insurance, you can cover up to 80% of your risk, so you’re personally protected as you plan the future funding and growth of your business. For more information on what personal guarantee insurance entails, speak to one of Purbeck’s specialists today on 0208 004 7250.
[i] Calculated based on the number of loan facilities - 1587
For more information or to speak to one of our underwriters contact us today.