Purbeck Personal Guarantee Monitor Q3 2022
Purbeck Personal Guarantee Insurance, the U.K.’s first and only provider of personal guarantee insurance has published its Q3 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.
- 123% year on year increase in business loans secured with personal guarantee attached
- Loans secured for growth at highest level since Q1 2021
The volume of finance deals has jumped 123% year on year. While working capital remains the prime reason for new funding with 28% of loans secured for this reason, Purbeck’s analysis shows that more small businesses are using finance to invest in growth opportunities compared to Q2 2022. In fact, the number of loans being used to support growth opportunities has reached its highest level since Q1 2021.
Unsecured loans remain the prime funding route making up 37% of business loans in Quarter 3 2022, up from 28% recorded in Quarter 2 2022.
However, the average value of loans has fallen by around 10%, from £164,524 in Q3 2021 to £148,357 in Q3 2022.
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, MD of Purbeck Personal Guarantee Insurance said: “Despite concerns over access to finance for small businesses, our data shows that Q3 2022 has been another strong quarter in personal guarantee backed loans for small businesses. We have seen a steady increase in loans secured for investment in growth opportunities which is hugely positive given the immense cost challenges facing many small firms. With interest rates rising, the issue now is servicing these new loans as the cost of doing business continues to grow.
“This really underlines the importance of personal guarantee insurance to protect the personal assets of business owners and directors who have put their savings, investments and even their home on the line as security should their business fail. With insolvency rates exceeding pre-pandemic levels[i] it is vital small business owners take every step they can to mitigate the risks that come with securing new funding.”
Read more B4 Business News here
Join our LinkedIn Page
More in Insurance
The number of small business owners who took insurance to guard...
Applications for personal guarantee insurance up 106% in Q4 2022 and 145% for 2022 on 2021 Working capital top reason for new funding, applications up 144% in 2022 on 2021 Huge 181% rise in applications for cover on loans £25-£50k year on year January 2023: Personal guarantee insurance (PGI), a product used by small business […]
Big firms must be properly penalised for late payment
52% of small firms just ‘treading water’, rising to 72% in East Midlands December 2022: Purbeck Personal Guarantee Insurance has welcomed the Government’s review into the late payment practices of big firms[i] but is calling for tougher measures to stop the stranglehold larger businesses have over their smaller suppliers, once and for all. Recent research […]
Average start-up loan value falls to £142k and loan volumes drop...
November 2022: New analysis of startup loans with personal guarantees attached has found that the average loan has fallen over 138% in the past year to £142,492, from £339,304 in 2021. The analysis by Purbeck Personal Guarantee Insurance, the U.K.’s only provider of personal guarantee insurance (PGI) to small business owners, has also identified that […]
From this author
Rising cost of fleet operations gives cause for re-evaluation, says Venson
TIME TO GO TO TENDERwww.venson.com It’s not just a cost-of-living crisis that is giving cause for financial reassessment, the rising cost of fleet management is forcing many businesses to reassess partnerships and service provider relationships. After salaries, fleets can represent one of the biggest operational costs for a business, so careful selection of outsourced expertise […]
The number of small business owners who took insurance to guard...
Applications for personal guarantee insurance up 106% in Q4 2022 and 145% for 2022 on 2021 Working capital top reason for new funding, applications up 144% in 2022 on 2021 Huge 181% rise in applications for cover on loans £25-£50k year on year January 2023: Personal guarantee insurance (PGI), a product used by small business […]
Tracker data reveals over 30 ‘Chop Shops’ have been uncovered in...
LONDON – January 26, 2023 – In joint operations, Tracker Network (UK) and the UK police force uncovered 32 illegal chop shops during 2022 – over a 300% increase on the number of chop shop closures recorded by Tracker since 2021. Alongside vehicles recovered that were fitted with Tracker units, it has helped return 100’s […]