Paragon Development Finance has launched a new light industrial financing product aimed at experienced developers delivering units of 5,000 square meters or less.
The facility offers financing of up to £10 million over a term of up to 24 months and is designed to support SME developers responding to the rising demand for modern, flexible industrial space in the UK.
According to Paragon, demand for small industrial units remains high. Occupational demand reached 37.4 million square feet in 2025, the highest level since 2022 and 12% above the pre-pandemic five-year average. User interest is particularly high among SMEs, trading companies, e-commerce retailers and hybrid companies looking for functional, flexible and well-located space.
Commenting on the launch, Neal Moy, director of development finance at Paragon Bank, said:
“There is a shortage of small, flexible and well-located industrial units across the country, with SMEs increasingly looking to grow, improve their logistics capabilities or bring production closer to home. By providing specialist financing of up to £10 million over 24 months, we are enabling developers to deliver the high-quality units that modern businesses need to operate, grow and scale.”
He added: “This new product builds on a series of strategic steps we have taken over the past year, including a growing footprint in the later living, care, PBSA and Build to Rent segments, as well as increasing our borrowing limit from €35 million to €60 million.
“Light industrial financing is the next step to ensure our development partners receive the support, clarity and long-term relationship focus they expect from Paragon.”