In the third quarter, the number of personal guarantee-backed business loans increased by more than double (123%)

The most common reason given for taking out these backed loans was for working capital (28%) or investing in business growth.

Unsecured loans are still the main funding option, making up 37% of business loans in the third quarter. Although, the average value of unsecured loans has fallen by approximately 10% year-on-year.

Todd Davison, the managing director of Purbeck Personal Guarantee Insurance (who collected this data), said "We have seen a steady increase in loans secured for investment in growth opportunities which is hugely positive given the immense cost challenges facing many small firms. With interest rates rising, the issue now is servicing these new loans as the cost of doing business continues to grow."

Article by P2P Finance News