Paragon Bank’s SME Lending division has significantly improved the speed and consistency of its credit decision-making over the past year, following continued investment in people, processes and technology to enhance the customer experience for brokers, vendors and SMEs.
Across a 12-month period, the Southampton-based lender has reduced the average time from receipt of proposal to credit decision by approximately 39% for asset finance deals, helping brokers and SME customers move more quickly from application to funding.
Service improvements have been accompanied by stronger and more consistent outcomes for customers, with offer rates increasing by around 13% year-on-year. Conversion from offer to completed transaction also improved, rising by around 4%, while Paragon’s SME customer base grew by approximately 8% over the same period.
These gains have supported increased activity across a range of asset categories. Asset types driving the largest increases in deal volumes included cars, agriculture, commercial vehicles and waste and recycling. Some of the highest increases in the value of deals were seen in agriculture, plant machinery and light commercial vehicles, reflecting ongoing demand for essential operational assets among SMEs.
Alongside day-to-day lending activity, Paragon continues to support smaller businesses through the British Business Bank’s Growth Guarantee Scheme. The bank has now received a further £63 million allocation, available to deploy through to 31 March 2027. Since the scheme launched, Paragon has deployed approximately £80 million to SMEs, supporting investment in soft assets and operational improvements, including energy-efficiency upgrades, cybersecurity infrastructure, workforce training and more.
Operationally, improvements have been underpinned by continued enhancements to Paragon’s broker portal, including expanded self-serve functionality and system upgrades designed to reduce manual intervention and speed up deal progression. Paragon has also invested in its internal sales and support teams across both broker and vendor channels to improve responsiveness and consistency of service.
Phillip Hughes, Deputy Managing Director of Paragon SME Lending, said: “Speed and reliability really matter to SMEs and the brokers and intermediaries who support them. By continued investment in our people, platforms and processes, we’re consistently making quicker, better-informed decisions while maintaining robust credit standards. That ultimately translates into a better experience for our customers, as evidenced by the fast-growing number of SMEs we serve.”
