Standard Monthly Repayment (Debit Order)
Lula collects repayments via a monthly debit order against the business bank account used during the application. The debit order runs on a fixed date each month for the agreed term (3, 6, 9, or 12 months).
Monthly repayment consists of:
- A portion of the capital (principal)
- The agreed monthly cost charge (approximately 2%–6% of the original advance for early months, 2% thereafter)
No additional fees are charged on top of the agreed repayment schedule.
Early Settlement (Prepayment)
Both the Cash Flow Facility and Fixed-Term Funding allow early settlement at any time.
How to settle early:
- Log in to https://secure.lula.co.za.
- Navigate to your active advance or facility.
- Select "Settle Early" and confirm the outstanding capital balance.
- The remaining future cost charges are automatically waived — you only pay the capital still outstanding.
- Lula will debit the settlement amount on the agreed date or as instructed.
Benefit of early settlement: Because monthly cost charges are waived on future months when you settle early, the effective cost of your finance reduces the sooner you repay.
What Happens if You Miss a Payment?
Warning: Missing a repayment has serious consequences. Lula may apply additional charges and report the default to South African credit bureaus, which can damage your business credit profile and impair future access to financing. If you anticipate difficulty making a payment, contact Lula proactively at support@lula.co.za or call 087 250 0014 before the payment date.
Lula does not publicly list a specific penalty rate for missed payments. Under the National Credit Act, credit providers are required to disclose all fee structures in the credit agreement — review your signed agreement carefully.
Repayment Best Practices
- Maintain sufficient funds in your debit order account at least two business days before the monthly payment date.
- Set a calendar reminder for your payment date each month.
- Consider early settlement if your cash flow improves — the cost savings can be material.
- Contact Lula immediately if you experience trading difficulties — early communication often leads to better outcomes than a missed debit order.
- Keep your bank account details current in the Lula portal to avoid failed debit orders.
Re-Advance After Repayment
- Cash Flow Facility: No reapplication needed; simply draw from available limit again (subject to ongoing assessment).
- Fixed-Term Funding (6-month term): Re-advance available in under 4 months if repayments are met.
- Fixed-Term Funding (12-month term): Re-advance available after 8 months.