The Glasgow-based alternative finance provider said it was supporting businesses north of the border during the pandemic by continuing to provide loans to start-up and growing businesses “who would typically not be able to access sources. traditional financing ”.
Between July 2020 and June 2021, DSL provided loans to around 200 start-ups and growing businesses in Scotland. The average loan amount rose to £ 28,539, an increase of over £ 8,000 from the previous year.
‘Importantly, this funding has helped maintain 1,020 jobs and 211 have been created,’ the organization added, saying it is giving a ‘much needed’ boost to the Scottish economy.
DSL added that overall growth over the past five years has enabled it to increase its loan size by more than £ 5million, with double the number of loans granted each month compared to 2016.
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In addition to its own £ 5.6million funding of 199 investments in Scotland, DSL has mobilized £ 3.42million in private sector co-financing and an additional £ 140,000 from the public sector.
In September 2020, Derek Rae, a seasoned vehicle body expert, approached DSL to apply for loan funding to help start Stirling Bodyshop, with the goal of offering vehicle repair and painting services to private and commercial businesses. .
DSL provided him with a business loan of £ 25,000, which was used to finance the installation costs of the move into the premises and to pay for marketing materials for the initial launch. Mr. Rae has been able to develop Stirling Bodyshop over the past year, ensuring a steady and consistent customer base.
Safety rope
Stuart Yuill, Executive Director of DSL, said: “During this unprecedented time, we have remained open for business and are proud to have been able to provide a lifeline to many customers.
“We see ourselves as having a vital role to play in supporting the Scottish economy to maximize growth opportunities as we recover from Covid-19. In particular, we are delighted that our work has enabled 1,020 people to retain their jobs and brought new employment opportunities to 211 others.
“Over the past year, we have made new loans to many deserving businesses that are very unlikely to have received funding elsewhere, especially in the current climate. It’s incredibly impressive how these companies have adapted and diversified their offering, in many cases improving beyond their original ideas.
“We continue to build on the record year we had in 2020/21, providing loans to organizations and entrepreneurs who would otherwise have difficulty starting a new business or keeping their existing business afloat in the future. the current climate. “
Since April 2020, DSL has implemented process changes to overcome the logistical challenges encountered as a result of Covid-19, including developing technology to complete online documentation.
It also integrated with the Start-up Loan Company’s Atlas system to allow new clients to apply for loans online, which is now an ongoing practice. The lender also offered customers time off or payment reductions and continued support from loan officers during the peak in restrictions.
