Purple Shoots is a little bit different from the credit unions. We are a responsible finance provider, so we don't do savings, and the demographic that we work with is entirely the people at the very bottom end of the economy. So, we're lending to people who are usually unemployed, they could be because of a caring responsibility or a disability, or it just could be because they can't get work or have been made redundant, but they're the people that nobody else will support, and our loans are for business purposes, so they enable people to get a business off the ground. So, we're a little bit different, so I think our experience has been a bit different too.
At the beginning of the pandemic, our income dropped off a cliff. Loads of our clients couldn't make repayments to us because their businesses had to close and they didn't qualify for any other support that the various Government agencies offered, for various reasons, so they all had to go back onto universal credit, which doesn't cover business costs. So, we had to absorb a lot of repayment holidays for them, which created a huge problem for us, but it did actually help our clients by giving them the holidays that they needed. Their businesses have largely survived, which is a good thing, and a lot of them have picked back up on their repayments since then. The worst moment was the very beginning with the original lockdown; the subsequent lockdowns were a little bit easier. But now, as they're picking back up, because they've had no support over such a long period and they haven't been able to generate income for such a long period, they are struggling. They're reopening, but reopening with absolutely nothing, so they're coming back to us for further loans to help them get things restarted, which is a difficult judgment for us to make.
The other thing that's affected us is the fact that we've had to go to remote working, and most of our dealings with clients are face to face, and our typical client group are not very comfortable with online dealings, so that's been a difficulty that we've had to overcome. In terms of their general indebtedness, the people who I've described who had to go onto repayment holidays, a lot of them have really struggled and we've seen a rise in other debts, where we've seen their bank statements, they've had to resort to other forms of borrowing, usually the high-cost providers, which is very annoying, and a few—I hope not many more—have gone into debt relief orders or individual voluntary arrangements, which is a pity, because I think they could probably have negotiated out of those or negotiated without going into those.
I'm painting a very gloomy picture, but the positive is that a lot of the businesses that were started by these people have survived, are right at the root of their economies and are trying to pick themselves back up again. In terms of lending, we didn't lend at all in the first lockdown, but ever since then, we've been really busy, so throughout the subsequent lockdowns and the gaps when there weren't any, we've been busy and we're busy now.