Paragon Business Finance PLC, part of Paragon Bank, the FTSE250 lender, has become the latest financial services provider to register with the LSB’s (Lending Standards Board) Standards of Lending Practice for business customers – asset finance (‘the Asset Finance Standards’).
The Asset Finance Standards set the best practice framework for the provision of asset finance to businesses with a turnover up to £25m, and cover hire purchase and leasing products. The Standards’ implementation is overseen by the LSB, which works with registered providers to improve outcomes for customers using applicable products.
According to the Finance & Leasing Association (FLA), £23.5bn of new SME asset finance was agreed in 2024, and the value of new finance agreements has risen for the last four years in a row. Total new asset finance agreed in March 2025 was 11% higher than the same month in 2024.
Asset finance plays a key role in supporting business investment in equipment, vehicles and plant and machinery.
Anna Roughley, Deputy Chief Executive at the LSB added: “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.”
John Phillipou, Managing Director of SME Lending at Paragon Bank said: “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.
“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.”
Commercial lending is key to Paragon Bank’s growth strategy. Last financial year saw the business increase lending by 7.3% to over £480 million across its SME Lending division, in addition to an expansion of the business line’s loan book.
The Asset Finance Standards are a bespoke edition of the LSB’s Standards of Lending Practice for business customers (‘the business Standards’), which are the only independently-overseen lending protections for many UK SMEs. Like the business Standards, the Asset Finance Standards cover key areas of a relationship between a finance provider and business customers, including: product sale, financial difficulty, vulnerability, product execution and what to do where an application for finance is declined.
More information on the Asset Finance Standards can be found here.
