News

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.

Finding out your husband has signed a personal guarantee can feel a bit like someone’s just dropped a financial time bomb in your lap. That’s a valid feeling, and you’re not alone – 78% of directors who apply for finance are asked to sign a personal guarantee.

London, September 2025 – Purbeck Insurance Services, the provider of personal guarantee insurance to small and medium business owners and directors has reported a significant rise in the number and value of personal guarantee backed loans secured by young businesses. 

There’s no escaping the fact that modern business finance is changing. 

Imagine getting a call that your family home, the place you’ve poured your savings into, raised your family and planned to retire in, is being used to cover a debt your business can’t repay.

Purbeck Personal Guarantee Insurance Monitor, Q2 2025, reveals the growing burden for Directors and Owners of UK SMEs

Your business is doing well - not only are you planning to open a second location, but you're also looking into expanding your product range and taking on a few new hires. It's the kind of progress you've worked hard for. However, to get there, you need funding. And with the loan agreement comes a personal guarantee.