Paragon Banking Group’s SME Lending Business Reports Strong Growth in H1 2024

Paragon Banking Group’s SME lending business has reported a significant increase in new lending in the first half of the financial year 2024, showcasing the resilience and adaptability of UK small and medium-sized enterprises (SMEs) in the face of economic challenges.

The specialist banking group revealed that new lending reached £230.2m in the first half of 2024, marking a 4.6% increase from the previous year. This growth was driven by the SME lending sector, which offers leasing for business assets and unsecured cash flow lending, among other products.

One key factor contributing to the uptick in business was the success of Paragon’s online broker portal, which saw an increase in new business introductions. The portal, launched in 2021 and enhanced with auto-decisioning capabilities, has streamlined the fund distribution process for customers.

While asset leasing volumes experienced a significant 15% rise, short-term lending to professional services firms outside government schemes saw a slight decline. The Commercial Lending division also reported a modest increase in volumes, with commercial lending now representing 48% of the group’s new lending.

Despite the growth in certain areas, the overall new loans in the commercial lending businesses only grew by 2.7% compared to the same period in 2023. The general economic climate has impacted customer demand and completion levels across the sector.

Paragon Bank SME lending managing director John Phillipou expressed satisfaction with the increase in new lending, highlighting the resilience and flexibility of UK SMEs in navigating challenging circumstances. He emphasized the bank’s commitment to supporting SMEs in achieving their business goals.

The positive performance of Paragon’s SME lending business reflects the determination and adaptability of UK SMEs in the face of economic uncertainties. As businesses continue to navigate challenges, Paragon remains dedicated to providing the necessary support to help SMEs thrive and grow.