Small Biz Loans on the Rise — Why Your Coffee Café Might Be About to Get a Funding Boost
Picture this: the second quarter of 2024 just popped into the charts like a surprise party, and more and more small businesses are grabbing at loans to fuel their growth. According to the latest scoop from Purbeck Insurance Services—the UK’s sole provider of personal guarantee insurance for small‑biz loans—this is the highest level of applications in a three‑year span.
Growth‑Driven Funding: The Big Trend
- 19% of those freshly secured guarantees were earmarked for growth initiatives—think new equipment, marketing blitzes, or a fresh storefront.
- In contrast, only 31% were for working‑capital needs.
While growth remains the dominant driver, the percentage dipped to its lowest point since the third quarter of 2022, following a 37% spike in Q1 2024. It’s a hint that entrepreneurs are still pulling their weight in spinning their businesses into successes.
Crunching the Numbers
- There’s a 69% jump in personal‑guarantee insurance applications from Q2 2023 to Q2 2024.
- The average cover for a personal guarantee now sits at £195,051, a tidy 33% bump over last year.
- In construction, that figure romped to an all‑time high of £230,910.
Loans: What’s the Mix?
- Forty percent of the insurance applications are for unsecured loans.
- Sixteen percent are for secured loans.
- Only 8% are for asset finance, and invoice finance languished at just 5%—the lowest on record.
Election Effect & Entrepreneurial Confidence
At the end of May, the General Election was declared, and within days entrepreneurs surged back into the loan market. Todd Davison,Managing Director at Purbeck nailed it: “The election buzz gave businesses the confidence boost they need. Small business loan seekers are now more willing to sign a personal guarantee.”
He added, “The new government has some heavy lifting on its plate: it must clear the hurdles that have snared small entrepreneurs. Clear communication about personal guarantees and how insurance can mitigate the risk will help widen access. Small business owners need to see this as a tool, not a threat.”
Bottom line: The financial tide is turning, and small businesses are riding high. If your venture is looking to scale, now’s the perfect moment to explore personal guarantee insurance and secure that growth loan. Cheers to your next big step!
