Now more than any time since the last recession, small businesses need the confidence to borrow
Purbeck Insurance Services, provider of the UK’s only Personal Guarantee Insurance solution for the owners and directors of small businesses has welcomed the suggestion made by Andrew Bailey, CEO, Financial Conduct Authority in a recent report, to bring regulation into small business lending.
The FCA’s proposals would help boost small business confidence during what can be a complex and confusing process of securing a new loan. We know that accessing finance is something small businesses are being actively encouraged to investigate ahead of Brexit,[i] so this seems a logical move following the change in April 2019 to extend the powers of the Financial Ombudsman Service to Personal Guarantors of business loans.
Now, perhaps more than any time since the last recession, small businesses need to know they are getting access to the right lending solutions for their needs and that they are treated fairly in this regard. It is important to remember that small business loans are, in many cases, only granted because the owner or directors have signed Personal Guarantees, putting everything they own of any value on the line – including their homes. If it takes FCA regulation to achieve the same level of standards we now see in consumer lending then that can only be good. As a champion of the small business community we fully support these proposals.
- Purbeck Insurance is a specialist Personal Guarantee Insurance underwriter, authorised and regulated by the Financial Conduct Authority. We work alongside lenders and brokers to provide a bespoke insurance solution based on the lender’s individual requirements and risk profile. Please contact one of our specialists today to learn more on 0208 004 7250.
[i] https://www.gov.uk/government/news/banks-pledge-their-support-to-smes-through-brexit-and-beyond-in-new-charter?utm_source=a0ecb381-27fe-4a61-8124-3faea9a2a371&utm_medium=email&utm_campaign=govuk-notifications&utm_content=immediate
