Paragon SME lending rises as digitalisation speeds broker decisions
.png)
Paragon Banking Group said its SME Lending division grew in the six months to thirty one March twenty twenty six, with new lending reaching £259.5 million. That is a five point one percent year on year rise from £247 million, as the lender grew its net loan book to £925.8 million.
The firm linked the improvement to its digitalisation programme. Paragon said it has invested in digital infrastructure, sped up credit decisions and strengthened its broker channel, where it is aiming to improve how quickly brokers hear back on cases.
Paragon SME Lending posts higher new lending and a larger net loan book
When Paragon unveiled its half year results for the six months to thirty one March twenty twenty six, the headline for SME Lending was steady growth. New loans totalled £259.5 million, up from £247 million. The net loan book rose eight point five percent to £925.8 million, according to the company.
Why Paragon SME digitalisation matters to UK borrowers and brokers
For UK SMEs, funding delays can turn into missed orders and stalled cash flow. Paragon said its technology work is designed to shorten deal turnaround times and give brokers faster answers. In a recovering market, speed and certainty matter, particularly for asset backed lending where decisions often need data from multiple sources.
Broader demand also looks supportive. British Business Bank reported that gross SME bank lending increased by nine percent to £68 billion in its Small Business Finance Markets report, which it said indicates improving lending conditions. You can read the report here: British Business Bank Small Business Finance Markets report.
Which SMEs should pay attention to Paragon broker channel growth
This update will matter most to SMEs that apply through brokers rather than direct to lenders. Paragon said a thriving broker channel helped drive growth, so businesses that use asset finance intermediaries or buy more specialist equipment may see faster processing on suitable cases.
It may also be relevant to firms seeking UK asset finance and other commercial funding types where credit assessment speed can influence whether funding is in place when contracts are signed.
The figures behind Paragon SME lending growth and faster decisions
Paragon gave several signals about what changed inside the lending process. It said its digitalisation programme, including a partnership with Alfa, supported better broker responsiveness. It also said it increased its auto decisioning limit for SME Lending to £150,000.
Paragon previously explained the auto decisioning limit increase here: Paragon auto decisioning limit to £150,000 press release.
The company also said credit decision times fell by nearly forty percent. Alongside that, Paragon said it raised its digital capacity so cases can move faster through the approval stage.
What comes next for Paragon SME lending and applicants
Paragon tied performance to ongoing investment in customer experience and decision automation. The immediate implication for SMEs is practical: when a lender can approve more quickly, brokers can submit cases with tighter timelines and get answers sooner.
For borrowers, it is a good moment to review documents early, especially if you are working through a broker. Paragon also points to a wider strategy across the group, so SMEs may want to ask brokers how quickly similar applications are being processed now.
For more context on the lender side, Paragon’s results update also noted broader growth across the group’s loan book and commercial lending, as it positions itself to capture demand in the UK SME finance market.
