Nail polish manufacturer SMC Cosmetics has successfully secured a £20,000 from DSL Business Finance Ltd loan to help it grow and expand.
Founder of SMC Cosmetics UK Andrew Pearson approached The Scottish Microfinance Fund (SMF) for a loan to get his nail polish manufacturing business in Invergordon off the ground.
Andrew moved to Scotland in 1993 when his father set up a successful nail polish manufacturing company in Invergordon. Andrew was a Chartered Engineer working in Glasgow who wanted to move back to the area to raise his young family and using lasting industry relationships, technical expertise and the opportunity to start a new family business working closely with his father, nail polish manufacturing was the perfect opportunity.
SMC put health and safety at the heart of the business and is committed to minimising environmental impact whilst focusing on creating quality products. Nail polish involves flammable raw materials and the start-up cost is significant, so Andrew had a big hurdle to overcome to raise enough funding.
Andrew started looking for a bank loan in 2016, but was either turned down or offered a loan with high interest rates. “As a start-up, banks tend to blanket categorise the business as high-risk without really paying attention to the detail. This isn’t very conducive to re-generating an economy and instead, they tell you to come back in a couple of years when you are more reliable as a business. Without the attention to detail from DSL, it would have been very difficult or almost impossible to achieve”.
Murray Marshall was the local Loan Officer assigned to Andrew, who made sure he received funds quickly. Once the interview had taken place, Andrew received his £20,000 loan within three weeks which allowed Andrew and his father to buy equipment and raw materials that are essential to making their products.
Commenting on his SMF loan, Andrew added: “I would highly recommend The Scottish Microfinance Fund. They really helped us out when we needed it most.
“SMC now has nine employees and is looking towards future growth in the market. We would like to rival the current big four competitors in this exclusive market. There are only about seven or eight manufacturers in the world and we’ve found that they are usually inflexible and have long lead times. Our long-term relationship with our partners in China / Taiwan allows us to be more agile than our competitors in the Asian market.”
SMF is delivered by DSL Business Finance Ltd on behalf of the Scottish Government and is supported by European Regional Development Fund and The Start Up Loans company.
Visit our website to find out more www.dsl-businessfinance.co.uk