Purbeck Insurance Services, which specialises in personal guarantee insurance, has published research that shows a jump in the number and value of personal guarantee backed loans secured by young businesses. Purbeck said the rise suggested founder confidence in their fledgling firms and that they were attractive to lenders.

In Q2 of this year, Purbeck said 16% of the small business loans it had covered were for business under two years old. The was up from 9% in Q1 2025 and 6% in Q2 2024. It also reported the size of loans had risen significantly. In Q2 2025, the average loan was £165,538, up from £108,403 in Q2 2024 – a 52.71% increase year-on-year.

Todd Davison (pictured), managing director of Purbeck Insurance Services, said: “We’re seeing a clear shift in the lending landscape for start-ups. More start-ups are raising finance, and they're doing so with confidence using personal guarantee insurance to mitigate the risk of PG backed loans.

“The fact that loan values are rising suggests entrepreneurs are both ambitious and attractive to lenders. This is encouraging and points to optimism and resilience in the UK start-up scene.”