Scottish start ups receive £8.3m funding

Scottish start ups receive £8.3m funding

Start Up Loans Company has hit a milestone after delivering £8.3m funding to Scottish start ups to date.

The government-backed scheme has provided 1,826 loans and contributed to 2,150 new jobs since March 2014.

The company, formed in 2012 by the Department of Business, Innovation and Skills, provides loans of up to £25,000 at 6% fixed per annum, offering advice and mentoring to businesses.

Tim Sawyer, CEO of Start Up Loans Company, said: “Scotland is home to a wealth of ambitious aspiring business owners but, sadly, many lack the necessary funding and support needed to ever get their start up and early stage propositions up and running.

“Having witnessed how many businesses Start Up Loans have helped in England, the expansion into Scotland was an obvious progression.”

78% of all loans from the scheme in Scotland have been given to people formerly unemployed or economically inactive, and 90% of all loans provided to people aged between 18 and 24 have been to those not formerly employed or in education or training.

Deli and catering business, Contento, is one of the Scottish Start ups who received a support loan of £19,500 in 2015.

Kevin Finlayson, owner of Contento, said: “When I had the idea to set up Contento, limited access to finance was a real problem and I started to think it would be impossible to get up and running.

“The advice and support I received from my mentor was invaluable, and our first year in business has been a true success.”

The Glasgow based firm turned over more than £95,000 in its first year of trading and Mr Finlayson expects this to at least double in 2016.

Scotland Office Minister Andrew Dunlop praised the scheme, saying:  “The Start Up Loans Company has made a huge contribution to entrepreneurship in Scotland. 

 “I look forward to seeing more and more new businesses getting the essential support they need, helping to create jobs and economic growth in Scotland.”