Today there are several ways of raising capital for small business owners and entrepreneurs. Traditional banking, personal loans and SME financing firms are just a few ways that business owners can inject much-needed cash flow into the fledgeling enterprises.
In this piece, we explore how SMEs can apply for funding via LulaLend, a Cape Town-based startup which utilises a revolutionary online application process and internal credit metrics to provide short-term loans to small and medium businesses who are often unable to procure working capital.
Who is Lulalend?
Lulalend is a tech-driven financial services provider which was founded by CEO Trevor Gosling who co-founded the startup in 2014 with Neil Welman. Gosling cites a $23 billion financing gap in the South African SME market, which is estimated to contribute 34% of the GDP for our nation of 56 million citizens.
SMEs can apply online and need a bank account to obtain a loan disbursement. A notably high percentage of LulaLend's approvals are processed automatically—without the requirement of manual due diligence—using the company’s proprietary credit scoring technology.
The startup provides loans to multiple sectors quite evenly, including e-Commerce companies, manufactures, distribution companies as well as professional and business services firms.
Why use Lulalend?
LulaLend's application process is fast and online with no paperwork as opposed to traditional lenders who require several detailed application processes, including several visits to the banking branch. Funds once approved, are delivered within 24 hours of an application whereas, with traditional institutions, this can take as long as 12 weeks.
Furthermore, with LulaLend, there is no security requirement, as is the case with most banks. They are transparent as to costs which presented upfront, while often with traditional lenders, costs are variable over a period of time. There are no restrictions on what you can use the funds for, while banks usually require you to agree to the specific purpose for loan payouts.
Alternative lenders often boast a high application success rate, while banks are notably low in this regard. Moreover, several banking institutions have low levels of customer service while alternative lenders such as LulaLend often go beyond the call of duty for their clients.
What sort of financing can you apply for?
Alternative lenders offer loans and packages for several business needs including bridging finance, credit facilities, equipment financing, inventory financing and refinancing.
Why could alternative lending be right for your business?
Alternative lending has several pros and cons, and it depends on the sector which your business falls into and what you need the funds for.
For instance, if you are in any of the following situations, alternative lending makes sense. If you need funding fast, LulaLend and other alternative lenders can deposit funds into your account within 24 hours. The application processes are simple and can be completed online in a matter of hours or even minutes in the case of LulaLend's simple-to-use platform.
To find out more about LulaLend and which financing options they have for your business, visit their business page to access all of their contact information to find out more.