A SUPPORT agency which helps struggling firms secure funding offers a better service than high street banks, it was claimed today.

A SUPPORT agency which helps struggling firms secure funding offers a better service than high street banks, it was claimed today.

DSL Business Finance has dished out more than £350,000 worth of loans to small businesses and new starts since February 1 this year, researchers at Glasgow University revealed.

Last year it awarded just under £1million. The Govan-based agency lends cash to firms who have found it difficult to secure bank loans because of the credit crunch.

The findings by Glasgow University's Training and Employment Research Unit revealed 77% of clients thought DSL's service was "very good" or "good" compared with other sources of finance such as banks. And 97% of firms said they were either "very satisfied" or "satisfied" with the support agency's service.

Of the clients quizzed, 82% believed the agency was the only funding source available to them and 100% said they would recommend the not-for-profit service.

DSL general manager Eunice Lancaster said: "We've seen a huge increase in the number of small firms turning to us for assistance as bank lending has fallen due to the credit crunch.

"In the year 2008-2009 we awarded just under a £1m of loans compared to the previous year when only £277,500 was awarded. The number of firms applying for loans has also jumped from 56 to 144 in the same period."

DSL has been based in the West of Scotland for 15 years and bosses estimate they've helped more than 600 firms create 2000 jobs by providing more than £7m in loans.

The agency has a £1.5m loan fund which lends up to £50,000 to small and start-up firms, charities and social enterprises which can't get bank funding because they are considered a "high risk".

Ms Lancaster says the service is not driven by profit like conventional High Street banks and applications for funding are simpler.

She said: "We believe our customer satisfaction scores are high as we operate like the old-fashioned bank manager. Customers appreciate that we try to understand their business and what it needs, and don't just focus on the financial data.

"They tell us that we are approachable and helpful and we are willing to take chance where other lenders wouldn't."