Lulalend is a South African based fintech lender that provides business loans between R20000.00 and R1.5million at an interest from 2% to 6%. To qualify for a loan, a business needs to have operated for atleast 12 months and have a revenue of R500,000.00 per annum. Applications are processed within 24 hours.
Everything you need to know about Lulalend
With their quick and easy online application, your business can access funding of up to R1.5 million within 24 hours. The application is completely paperless, requires no collateral, and you get the approval decision in hours.
- Only businesses located and incorporated in South Africa
- atleast R500, 000 annual revenue
- 1 year + time in business
How to apply for Lulalend business loan
- Register for an account online
Sign up for a lulalend account online.
- Fill in the Loan application form
Once you sign up, you will have to fill in a short form about your business and the funding facility you are applying for.
- Link your internet banking account to the platform
They will request you to upload your recent bank statements or link your internet banking account to the Lulalend platform.
Using the KYC data, the information you enter during the application process and your banking information their AI powered system and human analysts will review your application.
- Receive your decision
Lulalend uses a scoring technology that evaluates the real-time performance of your business; this enables them to quickly determine the best possible funding for your business. this makes it possible to get a decision in the shortest possible time.
- Receive your funds
Once approved Lulalend will likely deposit funds into your bank account within 24 hours.
How will you repay
There are two repayment options; you can make the standard installments over 6 or 12 months depending on your capabilities.
Fortunately, you can still choose to pay early since Lulalend will not charge you any penalties for early settlement.
Every month you pay back 1⁄6th or 1⁄12th (depending on which plan you choose) of the total advanced amount plus the monthly cost.
Monthly Costs are 2% – 6% of your advanced amount for the first 2 or 4 months and 2% for each of the remaining months. Remember you can pay early and save on monthly costs.
Typical funding uses include:
- Purchasing Inventory
- Hiring Employees
- Launching Marketing Campaigns
- Purchasing Equipment
- Remodeling / Renovating
- Opening New Locations
- Managing Cash Flow
- Handling Unexpected Expenses
- Bridging Receivables Gaps
Industries that Lulalend funds:
Lulalend finances a number of industries and different types of companies but from our research we discovered that they seem to focus on the industries below:
Construction finance- construction companies that need to purchase equipment and material for their next project are easily funded. This eliminates the risk of waiting to free up cash-flow causing delays and putting new prospects at risk.
Funds for manufacturing- Applying for manufacturing funding in South Africa can be challenging. Unsecured SME finance is often subject to heavy restrictions and some of the requirements are stringed. Lulalend has become the bridge to combat the dynamic financing needs of the South African manufactures sector.
Financing for professional services – Professional business services and private practices include physicians, accountants or business consultants. Mostly, these businesses struggle with tight margins, so Lulalend deal with these businesses with the consideration of their operations.
Other industries include retail, hospitality and restaurants.
Lulalend’s Competitive Advantages
1. Transparent Costs
Lulalend has transparent costs which are agreed on upfront, that means, you will only pay the principal and the charged fee. With other lenders, costs may vary over time leading to inconsistent monthly repayment amounts.
2. NO Early settlement fees
Lulalend is flexible on repayments which allow you to make early loan settlements without paying any penalty.
Traditional lenders may penalize you for settling a loan ahead schedule. Sometimes they even make you pay all of the interest/fees on your loan as if you held it for the full term.
3. Faster application process
With traditional lenders, you will have to provide some paper works and even make a number of visits to their branch. Well, Lulalend’s online application process is fast and doesn’t need any paper work.
4. Free application
Traditional lenders would charge you an application fee (origination fees) which usually varies from 3% to 10% of a given loan amount. Lulalend will you save on these fees because there are no application fees or any hidden fees. You only pay for the agreed monthly amount.
5. No Restriction on use of funds
You are not restricted on how to use the funds received, weather you are making equipment purchase, financing a business trip or meeting other financial commitments, it’s all up to you. Other lenders would limit you to use the funds only on the agreed specific purpose.
Lulalend’s Competitive Disadvantages
1. Slightly higher interest rate
Lulalend charges between 2% to 6% of the advanced amount which is slightly higher than what a bank would offer. This is cancelled out by the fact that they do not charge a application fee or other hidden costs.
2. Annual turnover requirement may be too rigid for new businesses
The R 500, 000 annual turnover requirement may be challenge for newly formed businesses. Some lenders have reduced the requirement to 3 months.
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