63% rise in loan applications in 2024
SMEs in construction are boosting their financial resilience through personal guarantee backed loans and invoice financing according to Purbeck Insurance Services – the UK’s only provider of personal guarantee insurance.
63% more SME construction firms applied for personal guarantee backed finance in 2024 compared to 2023. This is where the owner/director puts their personal assets up as security for the loan and uses insurance to mitigate that risk.
There was also a 24% rise in construction firms using invoice finance in Q4 2024, allowing the lender to use unpaid invoices as collateral for funding.
Just under half of the SME construction firms taking on a new loan, needed the funds to provide working capital.
Todd Davison (pictured), MD of Purbeck Personal Guarantee Insurance, said, “With promises of a building boom, it is vital that firms take positive steps to improve their financial resilience so that they can stay the course. One way is to cut some of the risks associated with personal guarantee backed loans by taking insurance. This means construction firms can get access to the finance they need without exposing themselves to additional risk.”
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