Lulalend is a fintech lender situated in South Africa that offers business loans ranging from R20000.00 to R1.5 million with interest rates ranging from 2% to 6%. A company must have been in operation for at least 12 months and have annual turnover of R500,000.00 to qualify for a Lulalend loan. Applications are processed within 24 hours.
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.
Sign up for a lulalend account online.
Once you sign up, you will have to fill in a short form about your business and the funding facility you are applying for.
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.
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.
Once approved Lulalend will likely deposit funds into your bank account within 24 hours.
You have two payments options: normal installments over 6 or 12 months, depending on your financial situation. Fortunately, you can still pay early because Lulalend does not impose any penalty for paying early. Every month, you repay 1/6th or 1/12th of the entire advance amount plus the monthly cost (depending on the plan you choose).
Monthly costs range from 2% to 6% of your advance amount for the first two or four months, and then 2% for the remaining months. Remember that you can save money by paying in advance.
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 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.
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.
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.
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.
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 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.
The R 500, 000 annual turnover requirement may be challenge for newly formed businesses. Some lenders have reduced the requirement to 3 months.