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Applications for personal guarantee business loans up 50% | Purbeck

    • Applications for Personal Guarantee Insurance to support business funding rose 50.5% Q1 2022 vs Q1 2021
      In March 2022, the number of applications doubled those received in March 2021. 
      • 35% of finance applications with a personal guarantee attached are for ‘Working Capital’
      • Applications for personal guarantee insurance to support funding for ‘Working Capital’ up 88% vs Q1 2021
      • The average loan rises 22%, from £142,718 in Q1 2021 to £174,104 Q1 2022
      • Finance applications for business development up 69%

Purbeck Personal Guarantee Insurance Applications And Business Loans

Replacement RLS scheme to be announced | Purbeck

April 2022: Following a report in the Financial Times this week suggesting that(i) a permanent replacement for the loan schemes offered to small and medium sized businesses during the pandemic is in the pipeline, we have welcomed the move but urge caution over personal guarantee requirements which could prove a barrier to take up.

Dealing with the Personal Guarantee Dilemma

Starting a business is one thing but keeping it going often needs extra cash and while there is a good choice of funding options to consider, as a start-up it is unlikely you will have security in the business to offer the lender. This means you may need to sign a personal guarantee.

Half of SME workers have ambitions to start their own business

  • Men are more likely than women to want to start their own business – 57% of male respondents compared to 43% of female
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  • People in London and the South East are most likely to be budding entrepreneurs
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  • Those between 25 and 34 are the keenest to become their own boss (66%), followed by those aged 18-24 (55%) but 41% of the over 55s surveyed also have ambitions to start their own enterprise

 

Contact Us for more information

For more information or to speak to one of our underwriters contact us today.