Lulalend Inventory Loans

Oct 24, 2022

Introduction

Lula ( previously Lulalend) is an online lender that offers a variety of unsecured business funding options including retail financing and inventory loans. They provide quick, easy short-term funding through an online interface.

Some of the sectors that Lula caters to are manufacturing, construction, professional services, retail, hospitality and restaurants.

The company was launched to disrupt traditional lenders with their technology-first approach and by providing accurate and quick loan processing.

Main Features
  • Application process – Lulal’s application process is 100% online. To apply you will be required to share standard personal and business information, as well as upload recent bank statements or link your internet banking account via Yodlee. You can get approved in 24 hours.
  • Repayments – With their inventory loans you can choose between 6 and 12-month terms.
  • Qualifying criteria – They require that a business have a minimum monthly turnover of R40,000 as well as an annual turnover of at least R500,000 and it must be actively trading for at least one year.
Pricing

Lula charges a fee (cost) which is based on a % of the principal amount funded. The cost varies between 5% and 12% and is determined based on the risk and overall scoring of the business.

Monthly costs are 3% – 10% of your advanced amount for the first 2 or 4 months (plan dependent) and 2% for each of the remaining months.

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Pros

  • No collateral is needed.

  • No long queues or extensive paperwork

  • Transparent, flexible terms

  • Access to finance in 24-hours

Cons

  • The affordability assessment

  • Potential for Overstocking

  • Focus on Short-Term Needs

  • Limited Loan Amounts

FAQs

Lula Inventory Loans are typically designed for established SMEs that require additional capital to purchase inventory. They may have specific industry restrictions, so check with Lula for details.

To be eligible for Lula business funding, you need:

  • Minimum annual turnover of R500 000
  • One-year trading history
  • Business registered in South Africa

While specific requirements can change, you may typically need basic business documents like financial statements, bank statements, and proof of ownership.

Lula often prides itself on a fast and efficient approval process. The exact timeframe can vary depending on your application’s complexity, but it could be as quick as 2-48 hours.

Repayment terms for inventory loans are usually shorter than traditional business loans. They may range from a few months to a year, depending on Lula’s offerings and your agreement.

Failing to repay a loan can have serious consequences. It’s crucial to understand Lula’s late payment fees and the potential consequences of defaulting on the loan.