Investment Fund for Scotland
Loans from £25,000 to £100,000 for new or growing businesses in Scotland
Whether you are an entrepreneur wishing to start your own business, an early stage or more established business looking to grow you may find it difficult obtaining the finance you need. Smaller Loans can be used to fill the funding gap for growth and development projects.
DSL Business Finance is committed to driving sustainable economic growth in Scotland. Our Smaller Loans program is designed to support innovation and create local opportunities for new and growing businesses across Scotland. We aim to increase the supply and diversity of early-stage finance, breaking down barriers in access to funding and helping businesses that might otherwise struggle to secure investment.
Key Features:
- Loan Range: £25,000 – £100,000
- Eligibility: Stand-alone Legal Entities e.g. Limited Companies; Limited Liability Partnerships; Partnerships etc.
- Purpose: Starting up, scaling up, or business growth
- Term: Repayable over up to 60 months
- Interest Rate: Interest rate fixed at 10% – 14% per annum for the loan term
- Arrangement Fee: An arrangement fee of 2% is charged at the outset of the loan
Security and Terms
- Security: Bond and floating charge (ranking equally with or behind existing charge holders, if appropriate)
- Personal Guarantees: Required
- Other Security: As may be agreed
Application Requirements
To apply for a Loan, you will need the following information:
- Last 2 years’ full annual accounts (if available)
- Most recent management accounts
- Business plan or summary overview
- Cashflow, P&L, and Balance Sheet forecasts for a minimum of 2 years, identifying the funding requirement
- Agreement to Open Banking report
- Agreement to credit Report for all directors and shareholders with 20% or more shareholding
Terms and Conditions
- Terms and conditions apply.
- Credit is subject to status, affordability assessments, and credit checks.
Contact us to make an enquiry and find out more below:
Example Loan Calculator
Representative Example
If you borrow £60,000 over 5 years at an interest rate of 14% AIR, with a 2% arrangement fee of £1,200 and a £100 security fee both paid separately in advance and not added to the loan, you would make 60 monthly repayments of £1,396.10. The total amount repaid through monthly instalments would be £83,765.70. Including the upfront fees of £1,300, the total amount payable would be £85,065.70. The total cost of finance would be £25,065.70. APR 16.06%.
Important notes
This calculator is provided as a guide only and does not constitute a formal loan offer. Actual repayments and fees may vary depending on the loan product, approval process, agreed terms and the date repayments start.
- AIR means the annual interest rate used to calculate the monthly repayment.
- APR is calculated from the customer cashflows and includes the effect of compulsory fees where entered.
Investment Fund for Scotland is supported by Nations and Regions Investment Limited, a subsidiary of British Business Bank plc, the Bank is a development bank wholly owned by HM Government. Neither Nations and Regions Investment Limited nor British Business Bank plc are authorised or regulated by the Prudential Regulation Authority (PRA) or the Financial Conduct Authority (FCA).
DSL Business Finance is authorised and regulated by the Financial Conduct Authority (FCA) as both a broker and a lender (licence number 708646).
Enquire about the Investment Fund for Scotland Now
Please complete the below enquiry form and a member of our team will be in touch.