All you need to know about Lulalend and its business finance solution
How must I apply?
The application process is done completely online:
- For new clients: go to lulalend.co.za and click on the Apply Now button.
- For existing clients: go to lulalend.co.za and click on Log In
- Complete your personal details, then your business and financial information.
- Link your online bank account to Yodlee. This will allow you to provide us your bank transactional information in a read-only format. Alternatively you can link your Sage or Xero account for us to view your transactional history or upload a PDF version of your latest 3 month bank statements.
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 8 minutes
- If you link your online bank account via Yodlee (preferred option) or provide Internet bank statements, we are then able to process the application within one hour. If we need to manually capture the bank statements, then our processing time depends on the volume of transactions.
What is the minimum and maximum term? Can I extend the term?
Our funding period is over 6 and 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 our 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 is the minimum and maximum amounts offered?
Our funding ranges from R20,000.00 to R1 000,000.00
How does Lulalend use my online banking profile?
Both Yodlee and Lulalend can’t perform any payments, transfers or any other transactions using your information. Yodlee simply uses your securely stored login details for one purpose only: to retrieve transactions from your banking site. Lulalend uses your financial data for the sole purpose of assessing whether you qualify for a loan.
What is Yodlee?
Yodlee is a leading data aggregation and data analytics platform powering dynamic, cloud-based innovation for digital financial services. This advanced technology makes it easy for clients to upload documents, knowing that their information is protected.
How does Yodlee work?
Yodlee collects data on Lulalend’s site through screen scraping: a technique which collects data and sorts them into categories. After entering the details into Lulalend’s site, it gets encrypted from that point, to ensure that your details cannot be viewed by third parties. Your credentials are securely stored on Yodlee’s system and cannot be accessed by Lulalend
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).
What makes us different to other lenders or banks?
- Our process is much faster and completely online
- We require no paperwork
- We do not charge admin and initiation fees
- Our costs are transparent and agreed upon upfront
- There are no penalty fees for settling early
- Funds are disbursed within 48 hours of submitting your application
- We offer unsecured funding
Can I apply for funding for a start-up or new business?
Unfortunately, you need a successful trading history of at least 1 year, as well as a turnover of at least R400,000 per year to qualify for Lulalend business funding.
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.
How long has Lulalend been around?
Is Lulalend registered with any financial bodies/institutions?
Can I come to your offices to complete a form?
No, we are an online business and only accept applications via our website.
Where are you based and do you fund businesses outside of Cape Town?
We are based in Cape Town but service businesses throughout South Africa.
Do I need to send any other information for my application such as financial statements?
No, we only require your latest 3 months bank transaction history and all other details are captured during the online application process.
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 or 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 (e.g. email, address, bank details)?
Please contact our team via our support email: firstname.lastname@example.org.
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.
What are the requirements to apply for funding?
We require that your business has a minimum monthly turnover of R40,000.00 as well as an annual turnover of at least R400,000.00 and it must be actively trading for at least one year.
What interest rates do you charge?
Our funding is not linked to any interest rate calculation. We charge 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. (Here you can refer to our calculator).
What would my instalments be?
The accurate amounts would be dependent on your application outcome, but if you scroll to the bottom of our home page you can view a breakdown based on average risk.
How do your repayments work?
Monthly costs are 3% – 10% of your advanced amount for the first 2 or 4 months (plan dependant) and 2% for each of the remaining months.
Can I refinance my Lulalend advance before I have repaid all my instalments?
Yes you may apply for a Lulalend re-advance. Please contact a Lulalend consultant to discuss your re-advance options.
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.
My business is not making R40, 000.00 per month but I have contracts lined up which will generate approximately that. Can I still apply – AND/OR – I have a government tender, can I get funding?
Our affordability assessment (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 is a credit facility?
This is a facility that gives your business access to a line of credit which allows you to draw down on available funds without us needing to do an assessment on your business each time.
What are the benefits of the facility?
- Access to funds whenever you need them
- Only ever pay for the funds you draw down
- Settle early and save on future months costs
How long is my credit facility available for?
As long as you continue to trade well, the facility is available to you. Please note that you will need to remain linked via your online banking account or online accounting profile (Sage or Xero) to avoid placing your facility on hold.
How do I drawdown on my facility?
Log onto your Lulalend profile and go to the Credit Facility tab. You will see the available amount that you are able to draw down. Select the amount and click “Withdraw now”. You will then be presented with a legal agreement to sign online.
What happens to my repayment profile each time I draw down?
Each draw down cancels out the existing repayment profile and puts you on a new payment profile based on the total capital outstanding after the draw down.
When can and can’t I draw down on my facility?
You are allowed to draw down at any time, other than:
- when you are in arrears on any Lulalend product.
- when the Facility is placed on hold.
- 48 hours prior to your next debit order.
How much does it cost to have a credit facility?
It will not cost anything to have a credit facility product. You only ever pay for the funds you use.
What would my instalment and costs be for the facility?
Every month you pay back 1/6th of the total advanced amount plus the monthly cost. For the first 2 months, monthly costs are 3% – 6% of the capital amount drawn down and 2% for each of the remaining 4 months.
How do I increase my facility amount?
Log onto your Lulalend profile and go to the Credit Facility tab. You will see a red circle with an arrow next to Credit Facility Limit amount. You need to click on the Arrow and fill in the amount you would like to increase to.
My credit facility is on-hold, what does that mean?
This will occur when the system requires further information which has been flagged for review. A credit analyst will be in touch with you for more information if required.