Paragon Business Finance joins LSB’s asset finance framework

Paragon Business Finance, a key arm of Paragon Banking Group PLC, has officially joined the Lending Standards Board’s (LSB) Asset Finance Standards, reinforcing its commitment to responsible and transparent lending practices for small and medium-sized enterprises (SMEs) across the UK.

This development sees the FTSE 250 lender become the latest financial services provider to register under the LSB’s Standards of Lending Practice for business customers – asset finance, a framework that defines industry best practice in the provision of hire purchase and leasing products to UK businesses with turnover up to £25 million.

Paragon Business Finance’s Managing Director of SME Lending, John Phillipou, said the move highlights the bank’s focus on customer care and ethical finance:

“Registering with the LSB marks a significant milestone for our SME lending division. We’ve always been committed to responsible lending, and now by registering with the Asset Finance Standards we are sending a clear signal to SMEs that we’re dedicated to upholding the highest levels of customer care and transparency.”

The Asset Finance Standards, overseen by the independent LSB, set requirements for finance providers in key areas such as product sales, vulnerability, financial difficulty, and handling declined applications. With limited statutory regulation covering this segment of the SME market, the LSB framework offers vital protection for businesses seeking asset finance.

Anna Roughley, Deputy Chief Executive at the LSB, welcomed the announcement: “We are delighted to welcome Paragon Business Finance to registration with the Asset Finance Standards.

“Anyone registering with the LSB’s Standards and Codes is committing to delivering better customer outcomes and acting in accordance with best practice. This is particularly important in the SME finance market, much of which is beyond the scope of statutory regulation.

“Asset finance is playing an increasingly important role in supporting small business investment and growth, and it’s vital that business customers have confidence in their finance providers. SMEs should always check their finance provider is LSB-registered – to our business Standards or the Asset Finance Standards – if they want to make sure they have access to products and services covered by our independent assurance.”

According to the Finance & Leasing Association, UK SMEs secured £23.5 billion in new asset finance during 2024 – a fourth consecutive year of growth. New agreements in March 2025 were up 11% compared to the same month the year before, underlining the rising importance of asset finance in business investment.

Paragon Business Finance, which increased its SME lending by 7.3% last financial year to over £480 million, views commercial lending as a strategic growth pillar. The company says its alignment with the LSB framework will further enhance customer confidence as it continues to expand its lending operations.

Phillipou added: “As a trusted lender with decades of experience supporting SMEs to grow across the UK, we pride ourselves on acting with integrity and professionalism. We are pleased to align ourselves with the LSB’s principles and look forward to working alongside the LSB and our peers to promote best practice and continuous improvement across the sector.”