News

London, February 2026 - New data shows a late surge in demand for personal guarantee insurance (PGI) among SME manufacturers in Q4 2025, highlighting growing caution as firms navigated funding decisions at the tail end of the year.

For many SME directors, signing a personal guarantee has long been part of securing business finance. Whether it’s to fund growth, manage cash flow, or invest in property and equipment, lenders frequently require directors to put their personal assets on the line to move a deal forward.

London, January 2026 – New analysis of small business loan activity in Q4 2025 shows overall demand for funding levelling off despite diverging trends in construction and manufacturing. This is according to Purbeck Insurance Services’ latest data on personal guarantee insurance (PGI) applications. Directors/Managers of small businesses typically apply for Personal Guarantee Insurance when securing new personal guarantee backed funding for their business.

For many SME directors, signing a personal guarantee is just a part of doing business. Whether securing finance, leasing premises, or refinancing property, lenders often require directors to put personal assets on the line to move things forward.

Many SME directors assume that dissolving a limited company brings everything to a clean end, including any outstanding loans or liabilities. However, while dissolution formally closes the business, it does not automatically wipe away debt. For directors who have signed a personal guarantee, the financial responsibility can continue long after the company has ceased trading.

November 2025 – The U.K.’s only provider of personal guarantee insurance (PGI) to small business owners - Purbeck Insurance Services - is calling on the Government to use the 26 November Budget to give small businesses the certainty and stability they urgently need. The plea comes as new data reveals firms are pulling back on investment, borrowing more to maintain cashflow, and taking on greater personal financial risk with October ’25 a record month for applications for PGI. Purbeck’s analysis shows that 38% of SME loans taken in October were purely for working capital, to sustain cashflow. This is the highest proportion the business has recorded since the start of 2025.

Applications for Personal Guarantee Insurance are rising in 2025. Learn why and how to ensure your business and assets are fully protected.

For many SME directors, signing a personal guarantee is a necessary step to securing vital funding. Your signature can be the key to growth, but it also ties your personal assets to business risk. And as economic conditions continue to shift, that signature carries more weight than ever and protecting your personal assets is essential.

Highlights 

You’ve worked tirelessly to grow your business, putting in late nights and making tough decisions. So when the chance to secure extra funding arises, you seize it – even if it means signing a personal guarantee to make it happen.