- Sector: Financial Services
- Country of operations: South Africa
Bridging the funding gap
Lulalend is a company that believes that small businesses hold the key to a successful local economy. The South African-based organisation provides funding for small to medium-sized enterprises, allowing them to do everything from buying inventory and equipment to hiring more staff, opening new branches and launching marketing campaigns.
The company uses a fast and simple online application process that takes minutes to complete and provides a decision in a similar timeframe. The funds are then sent to the customer’s bank account within 24 hours, and a repayment schedule is set over either six or 12 months. The main lending criteria are that a business must have been operating for at least a year, have R500,000 ($34,000) in annual revenues and be based in South Africa.
“One of the biggest reasons small businesses struggle to stay on their feet is a lack of access to finance,” says Trevor Gosling, CEO. “We are committed to responsible lending and economic growth in South Africa by offering a product that allows business owners to get immediate access to business finance in a way that is easy, affordable and hassle free.”
There is a large funding gap for SMEs in South Africa, estimated to be around R346bn ($23.6bn). But the problem is certainly not unique to the country and Lulalend is eyeing up the potential to start offering its services in nearby countries in the years ahead.
“Lulalend is looking to plug the credit gap and is scaling rapidly in South Africa while also looking to grow beyond its borders and positively influence the economic growth in other African countries,” says Trevor. “This will require growth on numerous levels within the business. We are projecting our workforce to grow from 20 employees to more than 100 over the next several years.”