

Posted by Todd Davison on
125% year on year increase in loans secured with personal guarantee attached
July 2022: Purbeck Personal Guarantee Insurance, the U.K.’s first and only provider of personal guarantee insurance has published its Q2 2022 figures on the take up of Personal Guarantee backed loans by small business owners, based on the volume of personal guarantee insurance (PGI) policies sold. The volume of finance deals has jumped 125% year on year and small firms are ploughing more cash into acquisitions and growth.
The data is the only reliable source of information on the finance being secured by UK SMEs which have personal guarantees attached where the risk to the business owners/directors personal assets has been mitigated through insurance.
Todd Davison, our MD said: “We are seeing significant year on year growth in the volume of personal guarantee backed finance being secured by UK SMEs and while Working Capital is the number one reason for securing finance, the number of finance deals to support investment and acquisition has grown considerably which certainly indicates a level of optimism amongst small business owners, despite the current headwinds. This is welcome news as we face a summer of political uncertainty and increasing cost challenges."
“Now that the UK Government has confirmed it is extending the Recovery Loan Scheme, for a further two years with personal guarantees remaining a core feature, business owners looking to take advantage of the scheme should think about how they can mitigate the risk. Personal Guarantee Insurance exists to protect the many small business owners who have taken the big decision to become personal guarantors whether lending is via a Government backed scheme or secured independently.”
For more information or to speak to one of our underwriters contact us today.