The company, supported by Glasgow City Council, Wheatley Homes Glasgow (formerly Glasgow Housing Association), ng homes, Royal Bank of Scotland, among others, has been an alternative source of low-cost loans for those financially challenged for over 16 years.

In a recent communication to its customers, the firm revealed it would be entering a six-month orderly wind-down process. During this period, the company will continue to collect on its existing loan book while assisting customers with any inquiries they may have.

The full statement on the company’s website said: “Scotcash will stop lending with immediate effect and will be placed into an orderly wind-down. The wind-down of the business will last approximately 6 months, during which time the existing loan book will continue to be collected.

“The Scotcash team extended its deep regret to its employees, customers, and stakeholders, acknowledging their efforts to provide an affordable credit alternative for those excluded from mainstream financial services.”

The statement continued: “Scotcash was developed because of the need to provide regulated, affordable small loans to financially excluded people who pay a poverty premium to access financial services. The organisation has worked hard to deliver positive outcomes for our customers for over 16 years, but the current economic, regulatory and funding environment have impacted negatively on our ability to continue.

“We appreciate this is extremely difficult news for our employees, customers and stakeholders but, after full and careful consideration of all options available to us, we do not believe there is another viable route forward.”