Construction firms continue to drive demand for Personal Guarantee Insurance as working capital pressures persist
New data from Purbeck Personal Guarantee Insurance shows a sustained appetite for finance across the construction sector in 2026, despite ongoing economic uncertainty and tight cash flow. Purbeck’s data shows that 17% of all applications for personal guarantee insurance to support business loans were from construction firms during Q2 2026. While this was lower than the exceptional spike seen in Q1 2026, demand remained substantially higher than the same period last year and more than double the level seen in Q2 2025. Construction remains the number one business sector to use Personal Guarantee Insurance.
Key construction sector findings – Q2 2026
- · Construction accounted for just under 17% of all PGI applications.
- · Applications more than double Q2 2025 levels.
- · Working capital is the leading reason for finance.
- · Average personal guarantee value remained around £217,000.
Analysis of the reasons construction businesses sought finance shows that working capital remained the primary driver, accounting for around 50% of applications during Q2 2026. Businesses also continued to invest for the future, with applications supporting growth initiatives, finance to purchase assets and funding for development projects.
The average personal guarantee values also remained high at approximately £217,000, reflecting the significant funding requirements of many construction businesses.
Todd Davison, managing director of Purbeck Insurance Services, said: “Construction businesses continue to demonstrate remarkable resilience during a period of great political uncertainty. Even before Starmer’s resignation, pipelines were already contracting due to wider geopolitical pressures.
“Although working capital remains the biggest reason firms are borrowing, we’re also seeing encouraging levels of investment in growth, development and asset purchases, suggesting many businesses are positioning themselves for future opportunities rather than simply managing day-to-day pressures.
“Construction has consistently been the largest sector using Personal Guarantee Insurance since Purbeck began tracking applications, highlighting both the industry’s reliance on external finance and the continued prevalence of personal guarantees as part of commercial lending.”