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The founder of a community lending charity, Purple Shoots, emphasized that individuals with low credit scores should still have the opportunity to secure loans for starting a business. Karen Davies highlighted how mainstream lenders were overlooking a significant pool of talent by turning away such individuals. Tiffany Bramley, who faced rejection from her bank after the tragic loss of her daughter, also stressed the need for a change in how people are labeled by financial institutions.
In 2014, Ms. Bramley experienced a devastating loss when complications with her pregnancy resulted in the death of her baby, Tianie. This led to missed payments on her financial commitments, impacting her credit rating. Despite the hardships, Ms. Bramley was determined to rebuild her business, Tiff’s Cleaning Angels, in Cardiff. She found hope and support through Purple Shoots, which provided her with a loan of £3,000 to kickstart her business once again.
Purple Shoots, established by Karen Davies in Wales, has been instrumental in supporting nearly 1,000 new businesses over the past 12 years through loans of up to £5,000. The charity’s approach involves assessing the individual and their business plan to determine viability. While acknowledging the high-risk nature of their support, Mrs. Davies emphasized the transformative impact it can have, allowing individuals to create income, pay taxes, and contribute to the economy.
Advocates like Sam Rex-Edwards from Finance Innovation Lab are pushing for more accessibility to affordable lending for those with low credit scores. They are advocating for a “fair banking” law to compel mainstream lenders to provide better support to those facing credit challenges. Government-backed initiatives like the British Business Bank and the Welsh Development Bank offer micro-loans to support small business start-ups. UK Finance highlighted an increase in lending to small and medium enterprises in Wales, with efforts to collaborate with various entities to ensure more businesses can access the necessary finance for growth
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