For many SME directors, securing business finance means signing a personal guarantee. Whether you're applying for a business loan, asset finance, or an overdraft facility, lenders often require directors to take personal responsibility for the borrowing.
The growing pressure on SME cashflow.
Purbeck Insurance Services has welcomed the Government’s Small Business Protections Bill as an important step towards tackling the damaging impact of late payments on the UK’s small business community. Purbeck is the UK’s only provider of personal guarantee insurance to small and medium sized business owners and directors.
London, February 2026 - New data shows a late surge in demand for personal guarantee insurance (PGI) among SME manufacturers in Q4 2025, highlighting growing caution as firms navigated funding decisions at the tail end of the year.
For many SME directors, signing a personal guarantee is just a part of doing business. Whether securing finance, leasing premises, or refinancing property, lenders often require directors to put personal assets on the line to move things forward.
June 2021: As many businesses face the financial impact of four more weeks before pandemic restrictions lift, small business owners who have become personal guarantors for CBILS loans over £250,000 are being warned that lenders will come to them first, if they default on the loan – not the Government.
No company director wants to have to face up to the prospect of their business becoming insolvent. But directors have a duty to act in a certain way, in accordance with the relevant legislation, should their company find itself in a position where it can no longer pay its debts.
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For more information or to speak to one of our underwriters contact us today.
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