Operations Director at Purbeck Personal Guarantee Insurance comments:
In a sign of the increasing uptake of personal guarantee backed business loans amongst small business owners, and a corresponding need to mitigate the personal financial risks of these loans, Purbeck Personal Guarantee Insurance, the UK’s only provider of personal guarantee insurance saw policy numbers increase year on year by 143% in October 2021, making it a record month for the business.
The market sectors where business owners and directors have taken Personal Guarantee Insurance over the past month are predominantly construction, wholesale and professional services.
Keir Cox, Operations Director of Purbeck Personal Guarantee Insurance said: “Our data suggests businesses are keen to borrow as we get to the other side of the pandemic but may be facing a limited choice of options from lenders, outside of personal guarantee backed loans.This is even with a strong trading position, as has been the case for the majority of applicants over the past month.
“The increasing demand for personal guarantees from lenders was an issue we foresaw as an outcome of the pandemic but while business owners may have little choice over signing a personal guarantee if they need access to cash, personal guarantee insurance is giving them the confidence to take on a loan without significant risk to their personal assets.”