The founder of the Community Loan Charity said that a low credit score should not be prevented from obtaining a loan to start a business.

Karen Davies, who founded the Purple Shot, provides credibility to people who mainstream lenders reject, said the bank “missed a big talent pool.”

Tiffany Bramley's bank rejected her loan request to reopen her business after her daughter's death, saying the bank "inclines to label people and needs change."

British financial companies representing the financial services industry said that small businesses in the UK are "currently providing more than £60 billion in finance" for banks and finance this year.

When the tragedy occurred, Ms. Bramley ran her own business in southern England in 2014.

Complications of pregnancy mean she had to have an emergency caesarean section at 32 weeks, and her child Tianie died.

Ms Bramley said: “It’s like walking through hell.

Coping with the grief of losing Tianie and organizing the funeral meant that Ms. Bramley missed some payments for her financial commitments, which affected her credit rating.

But Ms. Bramley is determined to start her business again.

"It's like fireworks rising and falling - that's how my life just exploded," she said.

“I need to restart the business and make me feel like I’m in control of my life again.”

Ms Bramley was rejected by the bank when applying for a small loan, even if they were "sympathetic".

“They tend to mark people, and that needs to be changed,” she said.

The bank advised her to contact Purple Bud.

"That was when I met Karen," she said. "She was the one who gave me hope and trusted me."

Ms Bramley borrowed £3,000 to restart Tiff’s Clean Angel in Cardiff and successfully paid off the loan.

Purple Shooting has provided loans of up to £5,000 to nearly 1,000 new businesses since it started 12 years ago.

In 2023-24, the charity offered 69 loans, creating 104 new jobs, usually in deprived communities.

Mrs. Davis said: “We are watching this person and what they look like.”

“And we are looking at the business plan and whether it is feasible.”

She accepts that approach is high risk because her clients have “absolutely nothing from our loans”.

"So if something goes wrong, it will affect their ability to repay," she added.

Mrs. Davis said more than half of the borrowers in the purple shoot would be behind loan payments at some point, “We always accommodate that because we want them to succeed.”

"But the actual failure is much lower," she added, about 20%.

Mrs. Davis said the impact could be “transformative.”

She added: “People who have been working on welfare can generate income” and start paying taxes and benefiting the economy.

Sam Rex-Edwards, a charity finance innovation Lab, which reforms, said she wants to see mainstream lenders make it easier for people with low credit scores to get affordable loans.

She called for a “fair banking” law that would impose obligations on banks and other lenders to provide more support to those currently working to get credit.

“Too many people have to pay the poverty premium by using high-cost credit, such as payday loans,” she said.

“And too many small and medium-sized businesses aren’t going to thrive because they also reject the credibility of high street banks.”

The government supports small businesses from the UK Commercial Bank and the Welsh Development Bank, which provide micro-loans to business startups.

The British commercial bank said it has offered “5,165 loans worth over £53 million and started a business in Wales for over £53 million” since 2012.

A UK financial spokesperson said: “Last year, we saw the number of loans for SMEs in Wales increased and received more loan applications.

Banks also support other organizations, such as non-bank lenders and charities, which help businesses discover challenges in accessing mainstream finance.

“We also work with governments, regulators and business groups to help more businesses get the funds they need.”