Purbeck Insurance Services says a record number of UK directors are putting personal assets on the line to fund their businesses, with applications for Personal Guarantee Insurance rising 65% in the first quarter of 2026. The company said the increase was the highest quarterly rise on record.
According to Purbeck’s data, the average value of personal guarantees rose 14% quarter on quarter to £210,350, while the average loan value increased 22.4% to £330,200. Working capital accounted for 35% of borrowing, while growth-focused borrowing reached a record 20% of applications. Unsecured lending made up 49% of all applications, meaning the personal guarantee was the only security held by the lender.
Construction applications rose 87% quarter on quarter, while manufacturing applications increased 136%. Purbeck said 89% of applicants came from businesses that had been trading for more than two years, indicating that the bulk of borrowing came from established companies rather than early-stage ventures.
Todd Davison, Managing Director of Purbeck Insurance Services, said: “Personal guarantees are one of the least-discussed features of small business finance, yet they sit behind a vast proportion of the lending that keeps UK SMEs moving.” He added: “Business owners aren’t just surviving; they’re backing themselves to grow, even when it means putting their own financial security at stake.”
