This September, the number of SME business owners applying for insurance for personal guarantee backed finance for their business, doubled on September 2022 according to the Purbeck Personal Guarantee Insurance Monitor for Q3 2023.
September was also a peak month for Personal Guarantee Insurance applications in 2023, following a record high recorded in March 2023.
Applications fell dramatically in April 2023 however, suggesting caution amongst business owners to take on new finance but have been rising steadily since then.
The latest data suggests that confidence is rising amongst SMEs despite continued inflationary pressures.
Todd Davison, MD of Purbeck Personal Guarantee Insurance said, “The rise in demand for insurance for personal guarantee backed loans points to a rise in confidence amongst SMEs after a noticeable dip in the Spring.
“It does suggest that small businesses applying for loans are adapting to the challenging economic environment and fortifying their cashflows, given the majority of loans are for working capital.
“While commercial mortgages have become less attractive to business owners, based on our data, unsecured loans have risen in popularity as an accessible alternative source of finance for those businesses that need it.”