BUSINESS LOANS PROGRAMS BY LOAN TYPE - SOUTH AFRICA:​

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BRIDGING FINANCE:​

Bridging the gap in your cash flow

Bridging finance is a form of business finance used to cover immediate costs in the waiting time between

receiving an expected cash flow boost. The balancing act between what’s coming in and going out can be

like walking a tightrope. This can be especially true when you need to purchase expensive items sooner

rather than later.

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Bridging finance is especially useful if you are expanding your company or premises. In such cases, cash flow

can help cover your costs in the short term for investments that you expect a return on in the near future.

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The light at the end of the tunnel

The good news is, unlike the typically high-interest rates you’d find with this type of finance, LoanGIANT offers

bridging finance that is unsecured, more affordable, and easily accessible within 24 hours. We also allow you to

settle early without having to worry about penalty fees.

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With Lulalend's quick and easy online application, you can access business funding of up to R5 million within 24 hours. Our application is completely paperless, requires no collateral, and you’ll have an answer in hours.

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BRIDGING FUNDING - Questions & Answer:

Q. What is Bridging finance in South Africa?

A. Bridging finance is a type of finance used to cover short-term gaps in funding.

For a business owner, bridging finance refers to short-term funding to cover costs while you wait for expected funds to be released. In this way, bridging finance is a cash advance to you.

In South Africa, bridging finance can also refer to the proceeds of a property sale. Based on the sale of your property, a lender will grant you a portion of the proceeds of the sale.

 

Q. How to access bridging finance?

A. To access bridging finance, you will need to prove to the lender that you are set to receive funds. In other cases, you can access bridging finance to purchase goods. This means the lender might pay the supplier on your behalf.

Some funders will ask for collateral when you apply for bridging finance.

Once you have received the expected funds, you repay the lender. Bridging finance repayments include the original amount you borrowed, plus the cost of the bridge loan.

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Q. Do banks offer bridging finance?

A. In South Africa, some banks provide bridging finance so business owners can cover cash flow gaps. Remember that banks might require collateral or restrict the use of your bridging finance, e.g., must be used to pay suppliers directly.

Business funding specialists at Lulalend recommend you have clear time frames for when you need the bridging finance. If you need capital urgently to take advantage of a business opportunity, you will need bridging finance immediately. You will need to prioritise fast access to funding.

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Q. How does bridging finance work in South Africa?

A. Your agreement with the lender will determine the term of your bridging finance.

When you receive the money, you pay back the bridge loan, along with costs.

Lenders will need proof of the funds due to you.

This proof includes secured contracts or purchase orders.

Alternative lenders offer unrestricted bridging finance.

What this means is that you are free to use the bridging finance for any business expense.

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Q. How much interest do you pay on bridging finance?

A. The cost of your bridging finance depends on two things: the funder and the total loan amount.

Lulalend urges SMEs to take note of the lender’s policy on early repayments. You might have to pay penalty fees if you want to settle before your agreed term. This is frustrating if you need an overnight facility, for instance.

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Q. How long does it take to get a bridge loan?

A. The exact time frame depends on the lender and the type of bridging loan you need.

When it comes to property sales, you could have access to your bridging finance in a few days. Alternatives lenders, for instance, release funds into your account in a matter of hours.

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Q. Who offers bridge loans?

A. Banks, alternative lenders, and government funders provide bridge loans.

Lulalend’s business funding specialists warn SME owners against unscrupulous lenders.

Responsible lenders base their credit judgements on whether or not you’re able to repay the debt.

Stay away from lenders that promise to grant bridge loans even if you’re blacklisted.

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Q. Are bridge loans a good idea?

A. SMEs are often held back by inadequate cash flow.

Bridging loans smooth the ups and downs that come with running a business.

Bridging finance closes the funding gap for small businesses.

A bridge loan gives you the funds to take advantage of new opportunities, like expanding your business or pursuing a new contract.

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CREDIT FACILITY:​

Lulalend business credit facility?

For a small business, easy access to working capital can mean the difference between a good trading month and a bad one. Lulalend’s business credit facility gives you the peace of mind of knowing you can immediately access business funding when you need it most.

With our credit facility, you have instant access to a line of revolving credit, without needing to reapply. Lulalend’s secure and paperless online application process takes only minutes. You can access up to R5 million in unsecured, unrestricted business funding. And because your business is important to us, your account is managed by a dedicated funding specialist.

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How does our credit facility work?

You access your business line of credit when you need it, rather than reapplying for new business finance each time. No more unnecessary paperwork when you need extra funding; simply log in to your Lulalend profile and access funds at the click of a mouse. Here’s why more business owners are using Lulalend’s credit facility to grow:

• You only pay for what you use.

• There are no monthly account fees.

• Settle whenever you want, pay no early repayment penalties.

 

And because the facility works like revolving credit, the capital amount becomes available again after every repayment.

You must have been in business for at least one year and make a minimum annual revenue of R500 000.

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CREDIT FACILITY - Questions & Answer:

Q. What is a business credit facility?

A. A credit facility is a line of credit you can tap into when you need business funding. When you have a business credit facility, you can withdraw capital whenever you need it, without having to reapply.

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Q. How do I apply for a credit facility?

A. Different lenders have different application processes. Banks typically require more paperwork and take longer than alternative lenders such as Lulalend. Lulalend’s online application process takes only minutes and is paperless. Lenders will consider your business performance and ability to repay the credit when they assess your application.

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Q. How do credit facilities work?

A. Credit facilities let SMEs access capital up to an agreed limit whenever they want, without having to reapply each time. The lender agrees to make a line of credit available to you. You repay the credit over an agreed term.

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Q. What is the benefit of a credit facility?

A. For a small business, easy access to working capital allows you to take advantage of opportunities for growth. A business credit facility gives you peace of mind because you have instant access to funding.

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EQUIPMENT FINANCING:​

Taking Advantage Of Equipment Finance

At some point in your business's lifespan, you'll need to upgrade, update or replace equipment. This isn't necessarily something you can plan for the future. Emergencies and breakdowns can happen at any time, and often require immediate action. Your business could also experience accelerated growth or see an increase in demand, which would mean additional equipment would have to be purchased to meet the increased need. Show more

Let Lulalend Equip You With Quick Access To Finance

Most business owners need financing on the spot to purchase, repair or update equipment. Lulalend equips you for any of these scenarios. Accessing business finance shouldn't be complicated or time-consuming, so we've developed a way to give you access to R5 million in 24-hours with our quick and easy online application that only takes minutes to complete. Show more

Apply now

What will I pay?

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 2% - 6% of your advanced amount for the first 2 or 4 months (plan dependent) and 2% for each of the remaining months. You can pay early and save.

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Equipment financing FAQs

We're covering the most frequently asked Equipment financing questions we get from business owners:

Q. What is equipment financing?

A. Equipment financing is a loan to buy physical assets for your business. Once you take out the loan, you repay the money in installments over an agreed term. You might use this type of financing to purchase machinery or vehicles for your business.

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Q. How does equipment financing work?

A. The terms and conditions that come with equipment financing depend on the lender. Some lenders will purchase the equipment for you. In other cases, the equipment will act as security on the finance. This means if you default on the loan, the lender can claim the asset. You might also have the option to rent or lease the equipment.

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Q. How do you get equipment financing?

A. Most funders offer equipment financing. If you’re applying for equipment financing from a bank, you will typically need details about the equipment you wish to purchase. The application process might be long, so this is something to consider if you need the funds immediately. Some traditional funders will also ask for collateral. Alternative lenders, like Lulalend, offer a faster way to get equipment finance, and you don’t need collateral.

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Q. For how long can you finance equipment?

A. The term of the equipment financing agreement depends on the lender. In addition, the type of equipment you buy will influence the term.

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Q. What is the interest rate on equipment loans?

A. Interest rates on equipment loans vary. In addition to interest rates, some lenders will also charge monthly account management fees. You might also need to take out credit insurance. Make sure you’re certain of all costs before you sign your equipment loan.

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INVENTORY FINANCE:​

Inventory financing to boost sales

For retail businesses, having enough inventory on hand is crucial to ensure your business continues to trade smoothly. This is where business financing like inventory finance and retail capital comes in. Show more

Quick financing for the busy business owner

At Lulalend, we use other factors such as machine learning to determine the real health of your business and your individual risk profile, making it simple and easy to apply for inventory finance.

With Lulalend's online application, you can access business funding of up to R5 million in as little as 24 hours. We also offer ongoing access to cash flow financing in the form of a business credit facility that can help you cover routine business expenses.

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What will I pay?

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 2% - 6% of your advanced amount for the first 2 or 4 months (plan dependent) and 2% for each of the remaining months. You can pay early and save.

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Why Lulalend?

• Apply in minutes

• Transparent, flexible terms

• Access to finance in 24-hours

• Customer-centric service

  

• Unsecured financing

• Trusted by local SMEs

• No long queues or extensive paperwork

• We say yes more often

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Inventory financing FAQs

We're covering the most frequently asked Inventory financing questions we get from business owners

Q. What are inventory loans?

A. An inventory loan is a short-term loan offered to a business so it can purchase stock. Typically, you sell the inventory and use a portion of the proceeds to pay off the loan. Retailers use inventory loans to prepare for busy periods and to grow their sales.

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Q. How does inventory financing work?

A. When you apply for inventory financing, you’ll get a loan to purchase the stock you need. The funds might be a line of credit or a term loan. Your recent business performance will be used by the lender to assess your application.

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Q. Can inventory be used as collateral?

A. This depends on the lender. Some lenders will request that the inventory you purchase be used as security for the loan. If you’re looking for unsecured inventory funding, many alternative lenders, such as Lulalend, require no collateral.

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Get approved for up to R5 million today. No fees, no commitments

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OFFER TRADE CREDIT:​

OFFER TERMS

GET PAID IMMEDIATELY

Offer your customers up to
3 months to pay your invoices.
But you get paid up front

 

Let Lulapay offer your customers terms today.

You get paid immediately for any applications we approve. Never spend time collecting unpaid invoices again.

Avoid the risk - we assess all buyers to make sure they can afford to pay the invoice.

Free up cash to grow your business. No debtors means you can invest the cash in growth

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How does it work?

Your customers get

3 months
to pay an
invoice

30 days
interest and
cost free

No hidden fees
or costs

No penalties
for early
settlement

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REFINANCING:​

When you need help refinancing a loan

Refinancing can be a helpful way to shift your business's debt to a better place with the benefit of different, more favourable terms. This can help reduce your monthly repayments and give you some extra breathing room. Show more

How refinancing works is that a business would essentially re-evaluate their current repayment structure, interest rate or credit terms in order to enjoy more favourable interest rates. It's common practice for businesses who have taken out business financing or credit agreements.

Refinancing can also help you maintain a good credit record while simultaneously enjoying the benefit of lower interest rates. This is always better than dipping into your profits to cover your costs. The advantage of refinancing is that it allows you to maintain your repayments while your business grows, and helps reduce your debt.

Before committing to refinancing, ensure you have explored all the risks associated with this form of business funding. Many small businesses fail because of financial management, so it’s in your best interest to understand all the pros and cons to ensure your business is protected.

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Immediate access to inventory finance

While traditional lenders typically take weeks and sometimes even months to approve a small business loan application, Lulalend can give you access to business funding or a business credit facility in as little as a few hours. Show more

Our easy online application takes just a few minutes to complete,and you'll receive your approval and access to funding in as little as 24 hours.

Speak to the Lulalend support team today about your business financing options.

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Why Lulalend?

• Apply in minutes

• Transparent, flexible terms

• Access to finance in 24-hours

• Customer-centric service

  

• Unsecured financing

• Trusted by local SMEs

• No long queues or extensive paperwork

• We say yes more often

​

Refinancing FAQs

We're covering the most frequently asked Refinancing questions we get from business owners

What is a working capital loan?

Working capital loans are used to fund everyday business activities, like salaries and rent.

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What exactly does refinancing mean?

Refinancing refers to the process of taking out a new loan to pay off other outstanding loans. Businesses typically use refinancing to get a better deal on their interest rates or to consolidate their debt.

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What happens when you refinance?

Once you get the new loan, you’ll use the funds to pay off the outstanding debt. Ideally, the new loan has better terms than the previous loans

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When should I refinance my business loan?

Consider refinancing if you’re looking for improved interest rates or monthly payments. Evaluate your terms and determine if you’re able to secure a better offer from a different lender.

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Can you consolidate business debt?

When you consolidate business debt, you take out a new loan to pay off separate, existing loans. Approach a lender to determine whether or not refinancing your business debt is right for your SME.

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How do you refinance a commercial loan?

To prepare for refinancing, you should follow the same steps you take when applying for other forms of business finance. An audit of your existing debt is the best place to start. Next, determine your funding need and examine the options available.

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Get approved for up to R5 million today. No fees, no commitments

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EQUIPMENT FINANCING:​

Bridging the gap in your cash flow:

Bridging finance is a form of business finance used to cover immediate costs in the waiting time between receiving an expected cash flow boost. The balancing act between what’s coming in and going out can be like walking a tightrope. This can be especially true when you need to purchase expensive items sooner rather than later.

​

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Industry specific financing

• Manufacturing

• Construction

• Professional Services

• Retail

• Hospitality and Restaurants

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