Finance warning to UK’s small business owners as Brexit uncertainty continues
- - 70% of small business owners say Brexit uncertainty has made business harder
- - Long hours and pressure on family life some of the hardest aspects of running your own business
- - Small business owners cautioned on taking loans that will put personal finances at risk – 43% arrange funding without seeking independent advice
Small business owners exasperated by Brexit ‘purgatory’ and facing financial pressures as a result of the on-going uncertainty, are being urged to seek independent expert advice before securing a new loan.
In a survey[i] by Purbeck Insurance Services, 70% of small business owners said Brexit uncertainty had made their business harder over the past year and the burden of managing cashflow is one of top five hardest things about running a business. However, 43% go it alone when it comes to arranging new finance for their business.
Todd Davison, Director at Purbeck, the UK’s only Personal Guarantee Insurance solution for the owners and directors of small businesses said: “Many small business owners miss out on independent advice when arranging new finance which means they could be missing out on some of the ways they could minimise the risks, particularly where personal guarantees are concerned.
“Personal guarantees are a common requirement for small business loans – including those from alternative finance providers such as P2P platforms. Signing a personal guarantee is a big deal - it puts your personal assets on the line, but a finance professional such as a broker, accountant or solicitor can advise on the ways the risks can be cut. This includes Personal Guarantee Insurance, a relatively new type of protection which offsets any outstanding obligations called in by a lender and includes access to mentoring services to support businesses through financial stress.”
The hardest things about running a small business
- 1) Never switching off
- 2) Winning customers
- 3) Long hours
- 4) Uncertainty about the economy
- 5) The burden of managing cashflow
- 6) Retaining customers
- 7) The pressure on family life
- 8) Threat of competitors
- 9) Late payment
- 10) No one to turn to for advice
Based on a survey of 500 small business owners and directors, by Purbeck, 2019
- Purbeck Insurance is a specialist Personal Guarantee Insurance underwriter, authorised and regulated by the Financial Conduct Authority. We work alongside lenders and brokers to provide a bespoke insurance solution based on the lender’s individual requirements and risk profile. Please contact one of our specialists today to learn more on 0208 004 7250.
[i] Survey of 500 small business owners and directors by Censuswide for Purbeck, 2019