Paragon increases auto-decisioning limit for SME lending to £150,000

Paragon Bank’s SME lending division has announced an increase to its automatic decision-making loan limit, rising from £100,000 to £150,000. 

The higher threshold means a greater number of SME loan applications will benefit from faster, frictionless lending decisions, helping businesses access the funding they need with greater speed and certainty.

Paragon says its digital portal and data-driven credit assessment tools are enabling the bank to offer a more seamless customer experience and improved operational efficiency.

To qualify for automatic decisioning, applications must be for hard assets on hire purchase or finance lease products and have a value of £150,000 or less.

Paragon’s latest move is part of a broader programme of digital transformation across the bank, with automation, AI and data analytics playing a growing role in how it delivers value to customers. 

The increased limit comes at a time when UK SMEs continue to face challenges when it comes to external finance. In 2024, challenger and specialist banks accounted for a record 60% of gross lending to smaller businesses, marking a significant shift in the SME lending landscape as larger banks turn their focus away from lending to SMEs, according to the British Business Bank.

John Phillipou (pictured), managing director of SME lending at Paragon Bank, said: “Raising the auto-decisioning limit to £150,000 reflects our ongoing investment in technology and a deeper understanding of our customers’ needs. This change allows us to support more SMEs, more quickly, while still maintaining robust credit controls. Just as importantly, for applications that fall outside our automatic criteria, we’re using those learnings to refine our system over time, improving both the accuracy and speed of future decisions.”