The total value of loans supported by Personal Guarantee Insurance was over £300m in 2022, but just 4% of that value was for female founders

February 2023: Following news that a record number of new businesses were founded by women in 2022, new analysis of personal guarantee backed loans has uncovered a huge disparity in the level of financing women are securing compared to men. The analysis appears to support the findings of the Rose Review that female entrepreneurs are continuing to face challenges with access to funding.

Purbeck Personal Guarantee Insurance, the provider of personal guarantee insurance (PGI) has found that over the past 5 years, just 10% of people taking PGI for a business loan have been women.  Indeed in 2022, just 9% of policies were taken by women for personal guarantee backed loans. Furthermore, the total value of loans supported by Personal Guarantee Insurance amounted to over £300m in 2022, but just 4% of that value was for female founders, equating to £12m.

Todd Davison, our MD said: “The Rose Review has highlighted that funding remains the number one barrier facing female entrepreneurs. Women have been less willing than men to take on debt and less aware of different funding options, according to the review. We welcome the initiatives to boost access to and awareness of funding and clearly there is a role for Purbeck to play in making more female founders aware of personal guarantee insurance as an effective way to minimise the risks of personal guarantee backed loans.”