Business
Purbeck Insurance Services Responds to the outcome of the U.K. General Election
Global Banking and Finance Review
Company
“Labour needs to prioritise small business growth and funding”
5th July 2024: Todd Davison, MD of Purbeck Insurance Services says:
“We want to see Labour prioritising small business growth and funding. Access to finance from the larger banks for SMEs can be difficult and precious time can be wasted in pursuit of these facilities. Decisions by the big banks need to be expedited for SMEs so that they have the opportunity to explore other avenues if necessary.
“Reforms to the British Business Bank could make access to capital easier, particularly if the BBB increases links with alternative finance providers. At Purbeck, we see most applications for personal guarantee insurance coming from SMEs that have secured loans from alternative lenders.
“Also, knowing that cashflow can sometimes fluctuate, prior to taking finance, SMEs need to check what forbearance/assistance a lender would be able to provide in order to help manage cashflow and repayment obligations. Any policies on interest only repayments, repayment holidays and the fees/charges in these circumstances, should be provided up front by lenders in the application process.
“Fundamentally, closer liaison is needed between the new Government and the lending community to help SMEs overcome the barriers to finance.
“At the same time, Labour needs to recognise that navigating the myriad of SME finance options can be daunting. Improved awareness and education is needed on how different loan facilities work and what can be done to reduce the risk of personal guarantees such as sharing the guarantee or using personal guarantee insurance.
“As we await the outcome of the FCA’s review into small business lending practices, small business owners can alleviate concerns surrounding personal guarantee backed loans and instead view them as avenues for growth and opportunity.”
About Purbeck Insurance Services
Purbeck Insurance Services is a Personal Guarantee Insurance specialist supporting Small and Medium sized Enterprises (“SMEs”) and promoting business confidence
Insurance policies backed by Markel International Insurance Company Limited (“Markel”), an A-Rated insurer, as rated by A.M. Best (A), Fitch (A+) and S&P (A). Markel is a shareholder in Purbeck Insurance Services.
Purbeck Insurance Services is directly authorised and regulated by the Financial Conduct Authority
Insurance is underwritten by Purbeck Insurance Services, an authorised Managing General Agent (“MGA”) of Markel
Purbeck Personal Guarantee Insurance is annual insurance policy that provides Director(s) with insurance cover in the event their business lender calls in the Personal Guarantee (provided by the Director(s) as part of raising business finance)
Key features of Personal Guarantee Insurance:
Personal guarantee insurance is a type of coverage that protects directors from personal liability if their business lender calls in a personal guarantee when a loan is defaulted.
SMEs, or Small and Medium-sized Enterprises, are businesses whose personnel numbers fall below certain limits, typically characterized by their smaller scale compared to larger corporations.
Access to finance refers to the ability of businesses, especially small and medium-sized enterprises, to obtain funding from financial institutions to support their operations and growth.
Cash flow management involves monitoring, analyzing, and optimizing the net amount of cash receipts minus cash expenses to ensure sufficient liquidity for business operations.
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