Sharp Rise in UK Manufacturers Seeking Finance for Growth

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Applications for Personal Guarantee Insurance More Than Double in a Year

New data from Purbeck Insurance Services, the UK’s only provider of Personal Guarantee Insurance (PGI), reveals a substantial increase in the number of manufacturing business owners and directors seeking financial protection as they pursue growth and expansion opportunities.

The latest figures show that demand for Personal Guarantee Insurance within the UK manufacturing sector is rising rapidly, with application volumes increasing by 135% compared with Q1 2025. Alongside this surge in demand, the reasons manufacturers are seeking PGI are also evolving, reflecting renewed confidence and investment ambitions across the sector.

While working capital continues to be the primary driver for finance applications, accounting for 47% of manufacturing PGI applications during Q1 2026, there has been a significant increase in manufacturers seeking finance specifically to support business growth initiatives. Applications linked to expansion and investment projects doubled year on year, highlighting growing optimism among UK manufacturers despite ongoing economic pressures.

The findings suggest that manufacturing businesses are becoming increasingly focused on balancing growth opportunities with robust financial risk management. As more lenders continue to request personal guarantees for business borrowing, directors are looking for ways to protect their personal assets while still accessing the funding needed to scale operations, invest in equipment and improve productivity.

Across all industry sectors, manufacturing now represents 9.1% of all Personal Guarantee Insurance applications, rising from 6.4% in Q1 2025. This notable increase underlines the sector’s growing reliance on financial safeguards as businesses navigate expansion strategies and rising borrowing requirements.

The financial exposure facing manufacturing directors is also increasing significantly. According to the Q1 2026 data, the average loan amount linked to PGI applications in the manufacturing sector reached £188,413, compared with an average of £164,964 in Q1 2025. The rise in average loan values reflects increased investment activity as manufacturers seek larger funding packages to support operational growth, technology upgrades and long-term resilience.

Todd Davison, MD of Purbeck Insurance Services said: “The Q1 2026 data clearly shows that manufacturing directors are becoming more proactive in protecting their personal assets as they seek the capital required for growth. The doubling of application volumes and the shift toward investment-focused finance indicates a sector that is looking forward with ambition, but also with a prudent eye on risk management.”

The increase in Personal Guarantee Insurance applications comes at a time when many UK manufacturers are facing a complex operating environment shaped by inflationary pressures, supply chain uncertainty and the ongoing need for investment in automation, sustainability and digital transformation. Access to finance remains critical for manufacturers aiming to remain competitive in both domestic and international markets.

Industry analysts suggest that the growing use of Personal Guarantee Insurance reflects a broader trend among SMEs and manufacturing firms seeking greater financial security when taking on borrowing commitments.

With lenders continuing to adopt cautious lending practices, personal guarantees remain a common requirement for unsecured business finance, making insurance protection an increasingly attractive option for company directors.

The latest data from Purbeck Insurance Services highlights the extent to which UK manufacturers are preparing for future growth while taking a more strategic approach to financial risk management.