"Working capital to support cashflow continued to be the dominant reason for finance in Q4 2025, with 37% of all loan applications for this purpose, up from 33% a year earlier in Q4 2024, while applications linked to growth and expansion eased slightly. The average personal guarantee demand is now £185,000 (based on the level of insurance cover taken) against an average loan of £269,732 in Q4 2025."
"While the number of applications for personal guarantee insurance in Q4 2025 remained almost level with the previous quarter, dipping by just 0.1%, construction applications jumped 10.7% between Q3 and Q4 2025 reflecting ongoing demand for finance linked to contracts and project delivery. In contrast demand for funding and PGI from manufacturing firms fell by 25.3% over the same period, underlining continued caution around capital investment in the sector."
Overall small business demand for funding levelled in Q4 2025 despite diverging sector trends. Working capital remained the dominant reason for borrowing, accounting for 37% of loan applications in Q4 2025 compared with 33% in Q4 2024. Average personal guarantee cover was £185,000, supporting an average loan of £269,732, a 22% increase year-on-year reflecting inflationary pressures and higher operating costs. Total PGI-backed loan applications across 2025 exceeded 2024, with growth concentrated earlier in the year. Quarterly application volumes were almost unchanged, dipping 0.1% between Q3 and Q4 2025. Construction PGI applications rose 10.7% while manufacturing demand fell 25.3%.
Read at London Business News | Londonlovesbusiness.com
Unable to calculate read time
Collection
[
|
...
]