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Lulalend: Bridging Finance

Table of Contents
Introduction

Lulalend, a company that was founded in 2014 by Trevor Gosling and Neil Welman, offers to fund between R10,000 to R5 million to small business owners.

Their repayment structure is flexible – you can choose between a 6-month or a 12-month plan. You get full transparency before applying when you use their online funding calculator.

You can apply for a re-advance – when you choose to repay over six months and you meet your repayments, you can apply for a re-advance in less than four months. If you choose the 12-monthly repayment plan, you can apply for a re-advance in eight months.

Main Features

Type Of Funding – Bridging Finance

Qualifying Criteria – Your business should have a minimum annual turnover of R500,000 and must have been actively trading for at least one year. During the application process, your business’s VAT registration number is used for verification purposes.

Repayment Terms – You can choose between the six months term or the 12-months term.

Application process – Apply online and share details such as how much funding you need. According to Lulalend, the online application can take about 8 minutes to complete. You will be required to supply recent financial information. To speed up the approval process, the company advises that you link your online bank account, which will allow them to see your bank transactions in read-only format. You can get approved within 24 hours.

Pricing

Based on your loan amount, the monthly payment due includes a capital payment (a fixed fee) and the monthly cost. The monthly costs depend on what monthly plan you choose – 3, 6, 9 or 12 months.

How it works: Every month you pay back a sixth or 12th (depending on which plan you choose) of the total advanced amount plus the monthly cost. According to Lulalend, the monthly costs are between 2% – 6% of your advanced amount for the first one to four months (plan dependent) and 2% for each of the remaining months. If you settle your loan early, you will not be charged any further monthly costs or any early repayment penalty fees.

Pros and Cons

Pros

Transparency on costs - there is an online funding calculator available.

Cons

Stricter finance requirements – this can be a disadvantage to some businesses.
FAQs

Bridging finance can be used for a variety of short-term needs, such as:

  • Covering a temporary cash-flow gap while waiting for an invoice to be paid.
  • Funding unexpected expenses, like repairs or equipment breakdowns.
  • Taking advantage of a time-sensitive business opportunity, like a bulk purchase discount.
  • Bridging the gap between selling an asset and needing the funds for a new one.

Bridging finance can be a good option for businesses that need quick access to funds and have a clear plan to repay the loan within a short timeframe (typically 3-12 months). However, it’s important to consider the interest rates, which can be higher than traditional loans, to ensure it’s a financially sound decision for your business.

Lulalend prides itself on a fast and efficient application process. They advertise approval within minutes and funding within 24 hours, subject to completing the application and providing necessary documentation.

Lulalend keeps the application process paperless. You’ll likely need basic business information, recent bank statements, and your VAT registration number for verification purposes.

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