A question that often comes up when it comes to “Access to Funding” for SMEs is “Where can a semi-established SME access capital at relatively short notice for relatively small amounts (typically under R1m)?”.
This has always been a very tricky space for SME lenders for a variety of reasons. Business loans for under R1m are typically not attractive as margins on them are traditionally low and the administration costs make it unattractive.
For the entrepreneur, the idea of going into a bank or finance house and filling in a myriad of forms and application documents almost seems not worth the time.
The offering from LulaLend seems to be an attractive alternative for assisting businesses access capital in a quick and easy platform.
- LulaLend allows you to apply on-line (entire application process takes about 8 minutes)
- You can apply for between R20 000 and R1m
- You need to have been trading for a minimum of 1 year
- Typically looking for minimum annual turnover of R500 000 / R40 000 per month
- Scoring will be based on credit scores of owners / individuals
- A successful application can be paid out in full in 24 hours
- There are no early repayment penalties should you settle in advance
Co-founded by CEOs Trevor Gosling and Neil Welman in 2014, LulaLend is an online lending platform that allows small businesses to quickly and efficiently access capital.
In 2016, the company raised additional capital through an investment from Accion Venture Lab.