News

Discover the importance of financial well-being for maintaining a thriving business, and how personal guarantee insurance can mitigate bankruptcy risks.

As we approach the general election on July 4th, businesses, especially SMEs, need to prepare for potential economic instability caused by wavering confidence in the business landscape.

In today's rapidly changing economic environment, protecting your assets has become more than just a preventative measure; it's now a necessity.

The start of a new fiscal year presents the perfect opportunity to reassess your business’s financial position and plan ahead to ensure future success.

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.

• 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.

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.

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: 

FCA response to FSB super-complaint is imminent 

• 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