74% of SMEs would take out personal guarantee insurance

The most common reasons businesses want to take out a loan are to improve cashflow (28% of respondents) and acquire new equipment (27%).

15% of firms with a turnover of £1m-9.99m said they called on the expertise of a broker when securing finance for their business.

Furthermore, most would expect their finance broker to inform them of ways to protect their assets, with 87% respondents expecting their broker to mention the availability of insurance to cover the risk.

Todd Davison, director at Purbeck Insurance Services, said: “This survey highlights the valuable business opportunity personal guarantee insurance offers to finance brokers.

“It takes courage and commitment to put your personal assets on the line for your business. Our survey demonstrates that if directors are made aware of risk-mitigating options for a personal guarantee backed finance agreement, they may be more open to considering this type of finance.

"Personal guarantee insurance can play a key role in supporting finance deals, not only helping brokers to grow business and build trusted relationships with their clients but also providing an opportunity for them to earn additional commission.

“Our survey also found that a business’s bank or accountant are the most common places SMEs go to arrange new finance. However, the higher the turnover, the more likely the business is to seek advice from sources other than just their bank and accountant. Personal guarantee insurance can therefore give finance brokers a distinct edge in this competitive market.”