Lulalend’s most frequently asked questions

by | May 31, 2017 | Finance and funding, Lulalend News, Management and operations

What are the requirements to apply for funding?

We require that your business has a minimum monthly turnover of R40,000 as well as an annual turnover of at least R1,000,000, and must be actively trading for at least 1 year.

How long will it take to process the application?

Providing we have all the necessary information, the assessment and disbursement can take place within 24 hours. The actual application process should take no more than 10 minutes.

If you link your online bank account via Yodlee, your Xero or Sage One Accounting profile, or provide Internet bank statements, we are then able to process the application a lot faster.

How must I apply?

The application process is 100% online

  • New clients: Go to lulalend.co.za and click on the Apply Now button.
  • Existing clients: Go to lulalend.co.za and click on Log In
  • Complete your personal details, then your business, and your financial information

The fastest option would be to link your bank account via our service provider Yodlee, or link in your online accounting profile through Sage One or Xero if you make use of them. This will allow you to provide us with your bank or accounting transactional information in a read-only format which makes it easier for us to assess.

I don’t trust Yodlee, can I send you my bank statements?

Yodlee is trusted and used by many major companies such as PayPal, Amazon and many global banks. We use it to get a read-only view of your bank transactional history. This allows us to process your application automatically, avoiding time-consuming validations that are required for uploaded bank statements. Yodlee is totally secure and your bank credentials are never viewed or stored by us. Alternatively, you can upload your latest 3 months formal bank statements. Please be advised that scanned copies do not help much as it does not allow us to extract the data automatically.

How safe is it to link my accounting profile?

It is completely safe and secure to link your Sage One or Xero accounting profile. This will give us read-only access to your accounting information.

My business is not making 40k per month but I have contracts lined up which will generate approx. 40k, can I still apply? AND/OR if I have a government tender can I get a loan?

Our affordability assessment (the measure of business financial health) is based on the historical financial information of the business. Unfortunately, we do not take future contracts into account.

What are the minimum and maximum terms, and can I extend the term?

Our funding period is over 6 or 12 months. However, being a new client and trading for less than 2 years the system usually only allows a 6-month term. The 6-month term is much more flexible than 12 months. If you ensure that the re-payments are met on time you can apply for a re-advance in less than 4 months. Whereas the 12-month product will only allow a re-advance in approximately 8 months.

What if I want to settle early?

You are welcome to settle early and no penalties will be charged. All future costs associated with your advance will be waivered.

What would my instalment and costs be?

We’ve simplified the lending process with our 6 and 12 Month Plans. 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 3% – 10% of your advanced amount for the first 2 or 4 months (plan dependent) and 2% for each of the remaining months and is determined based on the risk/overall scoring of the business. You can also pay early and save.

The accurate amounts would be dependent on your application outcome, but if you scroll to the “What will I pay?” section of our homepage you can view a breakdown based on average risk.

What are the minimum and maximum amounts offered?

Our funding ranges from R20 000 to R500 000.

How do your repayments work?

Our repayment structure is flexible, allowing you to choose whether you would prefer to repay on a weekly, bi-weekly or monthly basis.

What makes us different to other companies/banks?

  • Our process is fast and online with no paperwork
  • We do not charge admin, initiation and/or service fees
  • Our costs are transparent and agreed upon upfront
  • Funds can be disbursed within 24 hours of submitting your application
  • We offer unsecured funding

Can I apply for a Lulalend advance for a start-up/new business?

Unfortunately, you need a successful trading history of at least one year, as well as a turnover of at least R500 000 per year to qualify for Lulalend business funding. Please read the following blog post for more information.

Can I refinance my Lulalend advance before I have repaid all my instalments?

Yes, you may apply for a Lulalend re-advance. Re-advances are usually available once 50% of an advance has been repaid. Please contact a Lulalend consultant to discuss your re-advance options.

Does the business information I submit online remain confidential?

Yes, all information submitted online is treated confidentially and will only be used by the Lulalend team to obtain an application result.

Is Lulalend registered with any financial bodies/institutions?

Yes, we are registered with the National Credit Regulator (NCR) and South African Credit & Risk Reporting Association (SACRRA). We are also a member of the South African SME Association (SASFA). SASFA was established to encourage transparent and responsible lending in the unregulated SME Finance Sector.  Currently, there are no Regulatory laws in the SME Finance sector.

Can I come to your offices to complete a form?

No, we are an online business and only accept applications via our website. However, we do have a support contact number (087 943 2381) that you can make use of if you would like to speak to a consultant.

Where are you based and do you fund businesses across South Africa?

We are based in Cape Town but service businesses throughout South Africa.

Do you offer personal loans?

Unfortunately not. We only offer business funding to registered South African companies, close corporations and sole proprietors who are VAT registered.

How long has Lulalend been around?

3 years (since 2014).

Can I attach my assets for funding?

No, we only offer unsecured funding. We do not call for collateral.

Can I apply if I/my business has a listing/judgement?

Unfortunately, Lulalend will not be able to assist you if you have any adverse listings on your name or adverse listings against your company’s name. You are welcome to apply should these adverse listings/judgements be removed.

How do I sign the legal agreement?

Once you have accepted our quotation, we will send your legal agreement via QuicklySign.  You and two independent witnesses will then need to digitally sign the agreement on the same PC/laptop.

How do I make changes to my application details (email change, address, bank details, etc)?

Please contact our team via our support email, support@lulalend.co.za.

What happens if I am late with my payments?

You will receive an email notification that the debit order was unsuccessful and will subsequently be contacted by our collections department. A late payment fee will be charged. If no action is taken to settle the outstanding amount we will then proceed with legal action.

What do I do if my credit profile is incorrect?

You will be required to contact CompuScan and have them update any incorrect information.

I can’t remember my Lulalend password, what do I do?

You will need to navigate to https://www.lulalend.co.za/Account/Login and click on ‘Forgot your password? Reset it now »’. You will then receive an email to reset your password (as we do not have access to view your password).

My business is not registered for VAT?

The VAT registration number is used for verification purposes, if your business is not registered with CIPC we require a valid VAT registration number. If your business is registered as a PTY Ltd then we do not require a VAT number. If you are a Sole Trader, we need a VAT registration number to proceed.

Odette Bester

Digital Marketing Manager

Passionately interested in digital marketing and helping businesses focus on building a strong digital strategy through a well rounded and strategic inbound and outbound marketing approach.

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