Paragon Bank reports SME loan book growth as tech upgrades cut approval times

Paragon Bank has reported a 7.2% increase in its SME Lending loan book, attributing the rise to strong customer retention, steady new lending activity and continued investment in digital systems that have significantly accelerated lending decisions.

In full-year results for the 12 months to 30 September 2025, the bank said its SME loan book reached £876.7 million, up from £817.5 million a year earlier. Growth was recorded across asset leasing, invoice finance and lending supported by the British Business Bank’s Growth Guarantee Scheme. New SME lending totalled £479.6 million, broadly in line with 2024 levels.

Paragon highlighted further progress in the rollout of its business portal, launched two years ago to streamline applications. The system handled 63% of SME Lending applications during the year, up from 50% the previous year, and processed 93% of new SME business, allowing specialist underwriters to prioritise more complex cases.

Ongoing enhancements to the platform have helped cut the average time from application to approval by 33% year-on-year, the bank said, while also improving conversion rates.

“SMEs are the backbone of the economy, so we are pleased to have supported thousands of customers with the finance they need to propel their business,” said John Phillipou, Managing Director of SME Lending. “These are a strong set of figures delivered in challenging market conditions.”

Phillipou added that system improvements were translating directly into faster turnaround times: “Far more applications are now completed on a same-day basis, and average times from application to payout have almost halved, providing a faster and more competitive experience for both brokers and customers.”

Across Paragon Banking Group, total lending reached £2.68 billion, comprising £1.19 billion from Commercial Lending – including SME Lending and Development Finance – and £1.49 billion from Mortgages. The Group’s net loan book grew 4% to £16.3 billion, while operating profit edged up 0.4% to £293.9 million.