Purple Shoots is a friendly, not-for-profit microfinance lender dedicated to providing accessible and ethical financial support to individuals who have been excluded from mainstream finance. Under our obligations as a lender regulated by the Financial Conduct Authority (FCA), we need to provide the following information. If you’d like to discuss any of this with us, please don’t hesitate to contact us!
What We Offer
- Small, affordable loans designed for start-ups, sole traders, and micro-businesses.
- No upfront fees and no hidden charges – complete transparency in costs.
- Flexible repayment terms tailored to your business needs.
- No penalties for early repayment – we encourage financial responsibility.
- Personalised support throughout the loan term, including mentoring and business guidance.
- We refer borrowers to lower-cost financial solutions where available, prioritising the best outcome over profit.
Loan Terms & Costs
Our loans are structured to ensure fair and responsible lending practices.
- Representative APR: 25.7% (exact rate is calculated based on individual circumstances).
- Interest Rate: 14.5% per annum.
- Loan amounts: Typically from £500 to £5000, depending on need and eligibility.
- Repayment period: Fixed terms of 12 to 36 months.
- Interest rates: Competitive and calculated fairly to strike a balance between affordability for our borrowers and the sustainability of Purple Shoots. As a not-for-profit lender, we do not seek to maximise financial gain but must ensure that we remain operationally viable to continue supporting businesses that are excluded from mainstream finance. Our rates are carefully set to keep borrowing costs low while maintaining the ability to provide future funding for others in need.
- Fees: No fees are charged by Purple Shoots.
Example Loan: We’ll give you 12-36 months to pay us back at an interest rate of 14.5% per annum (APR 25.19%-25.91%). So if you borrow for example £2000 over 2 years, you’ll pay back £107.50 per month for 24 months – totalling £2580.
We do not extend the repayment period beyond the agreed term. If a borrower struggles with repayments, interest payments are frozen beyond the term to prevent escalating debt.
Eligibility & Application Process
We welcome applications from individuals who:
- Are looking to start or grow a small business but have been rejected by traditional lenders.
- Have a viable business idea and a plan for how the loan will be used.
- Are willing to engage in financial education and mentoring to support their business journey.
Steps to Apply:
- Check Eligibility – Review our loan criteria to ensure we’re the right fit.
- Complete an Application – Submit an application through our website.
Click here for the application form
Decision & Support – If approved, we provide access to ongoing support and mentoring to help ensure success.
Affordability Assessment – We use Plend software to analyse financial affordability and ensure responsible lending.
Purple Shoots Loans The Process
Responsible Lending
At Purple Shoots, we follow strict ethical lending principles:
- We do not promote borrowing as a quick solution. Every loan is assessed with the borrower’s best interest in mind.
- Affordability first: We conduct thorough financial checks before approving loans to avoid over-indebtedness.
- Support over sales: We never pressure applicants to take out a loan and will refer them to alternative financial solutions when possible.
- Transparency in lending: All loan costs and terms are clearly outlined before an agreement is made.
We do not guarantee loan approval and do not claim that borrowing will improve credit ratings.
Frequently Asked Questions
Will I need a credit check?
Yes, we conduct affordability checks, but we do not base lending decisions solely on credit scores. Our approach considers real financial circumstances.
What happens if I struggle to make repayments?
We work with borrowers to provide flexible repayment solutions. If you are facing financial difficulties, we will discuss options such as repayment adjustments rather than penalising you.
Can I repay my loan early?
Yes! We encourage early repayment and do not charge penalties for doing so.
How do I apply?
Visit our application page, review the requirements, and submit your details. We will guide you through every step of the process.
Wealth Warning
Borrowing more than you can afford may lead to financial difficulties. If you are struggling with debt, seek free advice from organisations such as StepChange or Citizens Advice.
Purple Shoots is committed to responsible lending and ensuring that financial support remains fair, ethical, and in the best interest of our borrowers.
