How can Purple Shoots help me (apart from the loan) when I start my business?
First of all we look at your business idea. We do not lend to businesses that have no chance of succeeding because we want to act fairly and that would put you into difficulties.
We can support less experienced business owners through our network of volunteers who are happy to give their expertise and time to help out (marketing, accounting, sales, etc.)
Who can have a Purple Shoots small business loan?
We are currently operating for loans in Wales, The West Country, Yorkshire, Derbyshire and Lincolnshire.
Our ambition is to grow to be a nationwide offering, and we will update on this progress as we go!
Do I have to be a UK citizen?
No, but you must have a National Insurance Number and permission to stay.
Can I apply for a small business loan even if I have bad credit history?
You need to tell us about this and we need to understand all the circumstances, but yes, we can look at an application for a loan.
Do I need to have an established business?
No, we finance start-ups, but also we are happy to provide loans to existing businesses.
Do I need to present a business plan?
We will ask you questions about your business/business idea in the application form. We will also look at the idea in money terms. It helps if you have written plans of some sort. If you have trouble filling those out you can contact us first.
What are the age requirements?
We are able to finance people over 18 and there is no upper age limit so we’ll consider your case on its own merits. Everyone is different and we want to be fair.
What can I use a Purple Shoots loan for?
Can I use the loan for personal needs?
No, Purple Shoots issues loans only to people to help them with their business ideas, or to develop an existing businesses. Please click HERE if you need a loan for other purposes – this will take you to a partner firm who we work with.
Can I use the loan for paying back other debts?
No
Can I use the loan to set-up a small business?
Yes, Purple Shoots has an outstanding track record of helping people start their own businesses.
Can I get a loan just to help with the running costs of my business?
Yes, as long as we understand exactly how the money will be used and how you will repay us.
Can the loan be used to buy equipment?
Yes, as long as we know exactly what you will be buying and we understand how this helps the business.
Can the loan be used to refurbish the premises or for the deposit on rent?
Yes, as long as the location of the premises is suitable for your business.
Can I use the money for marketing purposes?
Yes, as long as you know exactly how you are going to use the money and can show how it will increase your turnover.
How much for and how long?
How much money can I apply for?
We try to tailor the loan amount to the actual needs of the business. Clients can take out a loan of up to £3000.
How long do I have to pay it back?
12 or 36 months, depending on the business needs and the loan amount.
Can I repay early?
Yes, there are no early repayment charges.
How do I get a Purple Shoots loan?
What kind of papers do I have to send in?
We ask you to send in the application form with attachments where you have them : CV, personal survival budget, monthly sales forecast, cash-flow forecast. We will also ask for copies of your last 3 months’ bank statements and we need proof of identity and address (presented during the meeting).
Do I meet anyone from Purple Shoots personally?
Yes, after sending in your application we will contact you and arrange a meeting. During the meeting we want to get to know you and discuss your business idea.
How long does the whole process take?
We try to make it as short as possible, usually it takes 1-2 weeks.
Do I need a business bank account?
No, we will pay-in the money into your personal account if necessary, but you will usually be opening a business bank account anyway.
Price
How much will a Purple Shoots loan cost?
The rate is 14.5% per year, which translates into APR 25.1-25.91%, depending on how long you have the loan for. This would mean that if you take a loan of £3000 for 36 months you would pay back £119.58 monthly (a total of £4305)
Are there any other fees/costs?
No, we do not charge any other fees.
Is there any penalty for early repayment?
No
Is there any penalty for late repayment?
Yes, we are very serious about timely repayment and want you to keep your commitments with us. However we want to talk to you if you are getting into difficulties so that we can help if possible.
Paying back
Can I pay weekly?
We recommend that you pay monthly.
How do I pay?
We arrange with you to have a Bank standing order on your account.
What happens if I don’t pay back on time (the exact day)?
We would expect you to tell us immediately and let us know what happened and how and what you are going to sort out the payment that is due.
What happens if I miss a payment?
We advise you to keep up payments carefully. If you anticipate that there might be a difficulty in making a payment please contact us urgently.
Do I still have to pay back even though the business has failed?
Yes, this is a loan and it has to be repaid. We advise you to think this through and find a way to repay even if it is not from your business.
Can I get some help/advice when I run into difficulties?
Purple Shoots cooperates with experienced specialists in various fields: marketing, advertising, accounting etc. – it is always advisable to seek advice/coaching in order to solve the problem before it gets out of hand. The earlier we know the easier it is to help you.
