Access to finance remains one of the key challenges for small and medium-sized enterprises (SMEs) in South Africa. High transactional costs, perceived risks and lack of understanding of the SME business environment are the main factors preventing mainstream banks from operating in this sector.
Fast, affordable loans
Lulalend’s fully automated lending approach seeks to resolve this funding gap. The online lending platform provides fast, affordable loans to SMEs neglected by the South African banking sector. The platform focuses on businesses with an operational track record of at least one year and an annual revenue of more than ZAR 500,000 (EUR 30,000).
Lulalend was founded in 2014 by Trevor Goslin and Neil Welman, both seasoned investment bankers. The company is located in Cape Town and operates across the country.
How it works
Entrepreneurs can apply online for free by filling in some basic details. Lulalend will provide a decision in minutes and, in case of a positive outcome, can provide business funding of ZAR 20,000 to ZAR 1,500,000 (EUR 1,200 to EUR 92,000) within 24 hours. Clients repay in standard installments over six months.
Lulalend has a tech-and-touch approach: client acquisition, credit process and monitoring of loans are fully automated; manual intervention is used only to assess business health and to sign off loan funding.
Investment Officer Stanley Anyetei: “Lulalend is an innovative player that uses technology and data management systems to meet the financial needs of the underserved small businesses in South Africa. They do this in an efficient, transparent and customer-friendly way. Our loan will be instrumental in reaching their goal of serving over 10,000 businesses in five years’ time.”