International Women’s Day: Female SME borrowing surges 51% but male/female funding gap persists
As International Women’s Day approaches, new data from Purbeck Insurance Services, the UK’s only provider of personal guarantee insurance (PGI), uncovers a sharp 51% rise in borrowing activity among female SME business owners in 2025. Even so, only 1 in 10 entrepreneurs using external funding and seeking insurance from Purbeck is female, underscoring the ongoing challenges female founders face in accessing and managing finance.
PGI is typically taken out by directors when securing funding backed by a personal guarantee, making it a key indicator of real-world borrowing behaviour.
Purbeck’s analysis shows:
- In 2025 there was a 51% increase in personal guarantee insurance (PGI) applications from female business owners vs 2024.
- Last year, female founders borrowed £42m through personal guarantee backed loans and took insurance to mitigate the risk
- Female owner/directors make up just 10% of all entrepreneurs with personal guarantee insurance
Cashflow resilience still the priority – 35% of loans for working capital
Despite the rise in applications, borrowing among female-led SMEs remains largely defensive. Thirty-five per cent of applications in Q4 2025 were for working capital, reflecting the need to manage higher costs and economic uncertainty. 17% were linked to investment in growth initiatives.
£131,933 average loan value reflects volatility and pressure
The average loan value for female SME applicants reached £131,933 in Q4 2025, up from £108,811 in Q3 2025, but below the £163,616 recorded in Q4 2024. The movement reflects fluctuating funding needs as businesses respond to inflationary pressures, higher operating costs and uneven confidence levels.
In contrast, the average loan size across the wider SME market increased year on year in Q4 2025, suggesting female business owners may be taking a more measured approach to borrowing.
Gender and access to finance in focus
The increase in applications comes amid ongoing debate around gender disparities in business finance. Research has consistently shown that female founders face systemic challenges accessing finance, especially in venture capital and external lending. Female entrepreneurs are more likely to self-fund, borrow cautiously and prioritise financial resilience. However, focused initiatives are starting to improve visibility and support for female entrepreneurs.
Todd Davison, managing director of Purbeck Insurance Services, said: “With International Women’s Day putting the spotlight on economic equality, our data highlights the need for lenders and policymakers to do more to level the playing field for female-led businesses. The 51% increase in applications for PGI tells us more women are actively engaging with funding, but they still lag way behind men in the total picture of borrowing activity we see amongst SMEs.
“While most loans being taken by female founders are for working capital what’s encouraging is that we’re also seeing signs of selective investment for growth. As funding conditions improve, ensuring fair access to finance – and tools like personal guarantee insurance that can reduce personal risk – will be critical in supporting female-led businesses to scale with confidence.”