Banks urged not to 'label' people with low credit scores

A low credit score should not stop someone from getting a loan to start a business, a community lending charity founder has said.

Karen Davies, who founded Purple Shoots to provide credit for people turned away by mainstream lenders, said banks were "missing out a big talent pool".

Tiffany Bramley, whose bank rejected her request for a loan to re-start her business after her daughter died, said banks "tend to just label people and that needs to change".

UK Finance, which represents the financial services sector, said the banking and finance industry was "on course to provide over £60bn" in finance for small businesses in the UK this year.