Paragon SME Lending cuts credit decision times by 39%

Paragon Bank says its SME Lending division has significantly improved the speed and consistency of credit decision-making following sustained investment in customer experience, technology and operational support.

Over the past 12 months, the lender has reduced the average time between receiving an asset finance proposal and delivering a credit decision by approximately 39%, helping brokers, vendors and SME customers progress more quickly from application to funding.

The improvements have also contributed to stronger customer outcomes, with offer rates increasing by around 13% year-on-year and conversion from offer to completed transaction rising by approximately 4%.

During the same period, Paragon’s SME customer base grew by around 8%, reflecting increased activity across several key asset classes.

The lender said the largest increases in deal volumes were seen in cars, agriculture, commercial vehicles, and waste and recycling, while some of the strongest growth in deal values came from agriculture, plant machinery and light commercial vehicles.

British Business Bank support has also continued to play a role in SME funding activity, with Paragon receiving a further £63 million allocation under the Growth Guarantee Scheme, available until 31 March 2027.

Since the scheme launched, the bank has deployed approximately £80 million to SMEs, supporting areas such as soft assets, energy-efficiency upgrades, cybersecurity infrastructure and workforce training.

Operational improvements have included continued development of Paragon’s broker portal, with expanded self-service functionality and system upgrades designed to reduce manual intervention and accelerate deal progression.

The bank has also continued to invest in its internal sales and support teams across 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.”