April 2024: As the Federation of Small Businesses (FSB) calls for a more comprehensive investigation into the use of personal guarantees for small business loans, the number of small business owners becoming personal guarantors continues to rise. According to new analysis of applications for personal guarantee insurance in Q1 2024, by Purbeck Personal Guarantee Insurance, the UK’s sole provider of insurance protection for personal guarantees, there has been a 49% rise in business owners seeking Personal Guarantee Insurance (PGI) for a small business loan. And most of these were for loans to simply keep their business running.
49% year-on-year rise in small businesses seeking protection from personal guarantees
Analysis suggests just 11% of small business loans go to female founders
- - Companies founded solely by women garnered just 1.8% of the total capital invested in venture-backed startups in Europe.
- - The total value of loans supported by Personal Guarantee Insurance (PGI) was over £379m in 2023, but just 5% of that value was for female founders.
- - 11% of people taking PGI for a business loan have been women, a small rise on 2022 which saw just 9% of policies taken by women for personal guarantee backed loans.
- - The total value of loans supported by PGI amounted to over £379m in 2023, but just 5% of that value was for female founders, equating to £20m.
Risks & Rewards of Signing a Personal Guarantee as a Start-Up Company
Imagine you’re launching your business – a passion project that’s been brewing in your mind for years. You have the idea, the plan, and the drive to make it happen, but when it comes to securing the financing needed to turn your vision into reality, you hit a brick wall.
Purbeck Personal Guarantee Insurance Responds to FCA Investigation into Personal Guarantees
March 2024: As the FCA outlines its plan to address the Federation of Small Business’ super-complaint regarding the use of personal guarantees on small business loans, Todd Davison, MD of Purbeck Personal Guarantee Insurance says:
Survey reveals worrying lack of awareness surrounding personal guarantees for small business loans
30 percent of small businesses plan to secure new finance in 2024
- -76% of small businesses in profit
- -32% of those seeking new finance need it to support cashflow
- -Personal guarantee insurance can provide peace of mind for small business owners
When it comes to navigating the market and understanding complex insurance options, clients sometimes need a little helping hand to find the right solution that will meet their needs.
Demand for Personal Guarantee Backed SME Finance rose by 68% in 2023
Average Mortgage Prices are Set to Soar in 2024 - What Does This Mean for your Buy-To-Let PG?
2024 is predicted to be a challenging year for the housing market, with forecasts indicating significant increases in mortgage rates. This potential surge is the effect of The Bank of England’s decision to hike interest rates, sparking an increase in housing costs that has sent a ripple through the mortgage landscape.
Buy-to-let landlords must prepare for a personal guarantee demand as mortgage rates fall
January 2024: As buy-to-let mortgage rates fall, bringing some relief to buy-to-let landlords, those shopping for a new mortgage deal are being warned by Purbeck Personal Guarantee Insurance, to prepare for a personal guarantee demand.
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