Eligibility Requirements
To qualify for Lula business funding, applicants must meet all of the following criteria:
| Requirement | Detail |
|---|---|
| Business age | Minimum 1 year trading |
| Annual revenue | R500,000 or more (R40,000+ per month) |
| Location | Registered and operating in South Africa |
| Business type | Registered South African business entity |
| Credit health | Business and/or director credit score in good standing |
Cost Example — Fixed-Term Funding
To illustrate the cost of borrowing, consider the following indicative example:
Example: A business draws down R300,000 over 6 months.
- Monthly cost for months 1–2 (at 6%): R18,000 per month
- Monthly cost for months 3–6 (at 2%): R6,000 per month
- Capital repayment spread across 6 months: R50,000 per month
- Estimated total cost of the advance: approximately R48,000
- Total repayment: approximately R348,000
Note: Actual costs depend on the individual Lula Score and credit profile. Use the Lula Business Funding Calculator for a personalised estimate.
Cost Example — Cash Flow Facility (Revolving)
For the Cash Flow Facility, costs are only incurred when funds are drawn. If the facility is not used in a given period, no costs are charged. This makes it particularly cost-effective for businesses with intermittent cash flow needs.
Risk Warning
Important: Business credit products involve legal obligations. If your business fails to meet its repayment schedule, Lula may charge additional fees and report default to credit bureaus, which can impair your business's ability to obtain future finance. The total cost of credit must be understood in full before accepting any quote. South African businesses are protected under the National Credit Act, No. 34 of 2005. For independent advice, contact the NCR Consumer Helpline: 0860 627 627.