Looking For a Revolving Credit Facility?

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Imagine having cash on hand 24/7 to deal with all your planned (and unplanned) business expenses over the next few years. That’s a revolving credit facility. At Lula, what we call our Revolving Capital Facility gives you the keys to a continuous flow of working capital in a South African lending market that’s making it hard for small businesses like yours to:

Secure funding quickly: Traditional banks drag their feet on loan applications, leaving you hanging when you need capital to seize an opportunity.
Access tailored financing: One-size-fits-all loans don't cater to the dynamic needs of a growing business. You need a solution that adapts to your day-to-day cash flow.
Avoid hidden fees: Unforeseen charges can eat into your profits and make budgeting a nightmare.

Fast, flexible, and secure, our Revolving Capital Facility provides a financial safety net so you can have the confidence to grow your business.

Our fees are fair and transparent, and we mean it when we say “revolving credit”: you can borrow again and again without having to reapply.

Keep reading to find out how to get your cash flowing with Lula.

What is an example of revolving credit?

If you’ve ever had a credit card, then you’ll have experienced an example of revolving credit. You simply use your card to make purchases and repay the outstanding balance (plus interest) each month.

A revolving credit facility is a financial instrument open to businesses that works on the same principle. Businesses can draw on the credit line as needed, repay the used amount, and then reuse the available credit.

Revolving credit facility vs term loan and overdrafts: what’s the difference?

Credit facilities, term loans and overdrafts are all common types of business lending. You borrow an amount you must pay back over a set period of time plus a fixed or variable interest rate. However, they have some key differences.

With a term loan, you borrow a lump sum of money, then repay that amount in fixed monthly installments over an agreed loan term.

Once a business loan is paid off, that’s it – there’s no more access to those funds.

A revolving facility is a business credit line. Your business is approved for a credit line up to a maximum amount, then you can draw on those funds when you need them.

As you repay what’s been borrowed, the available credit renews, allowing you to draw on the line again.

In short, it’s a continuous cycle of access and repayment.

Revolving credit facilities and overdrafts have more in common, but they still differ in some ways.

Banks charge fees for having an overdraft amount on your account, even when not used.

On the other hand, Lula does not charge a fee if you do not use your Revolving Capital Facility.

revolving credit facility

Can I cancel a revolving credit facility?

You can cancel a revolving credit facility, but a credit provider will typically insist on three conditions and you must accept all of them.

You pay off the outstanding balance
You confirm you want to close the account in writing (via email or letter)
You pay a cancellation fee.

It’s important to have a clear picture of these terms which you can get by reading the credit facility agreement in fine detail when setting up the account.

With Lula, there are no cancellation fees. All you need to do is pay the full settlement and confirm your request to close the facility in writing.

How does revolving credit work? The Lula way

Applying for revolving credit can be complex and time-consuming.

Lenders will often demand a very good credit history and ask for reams of bank statements and business plans: this is one of the reasons why small business funding in South Africa has taken a hit over the last few years.

Lula understands how frustrating this is for business owners, so we simply ask for basic personal and business details and three months’ transactional data.

We aim to approve in just hours and, once set up, your Revolving Capital Facility offers the following:

Instant access to working capital when you need it.

No monthly account or admin fees.

Interest charged only on what you use (if you use it).

A repayment schedule on your terms with no early payment penalties.

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You’ll never need to reapply, either, just access available capital when you want.

(As a responsible lender, however, Lula subjects each capital facility to a credit and affordability assessment)

Fast, flexible, and secure: The Lula Way.

How can you withdraw revolving capital with Lula?

Withdraw from your Revolving Capital Facility

How can I access Lula’s Revolving Capital Facility quickly?

Lula’s approval process is one of the quickest around: we aim to provide small business funding within 24 hours.

Yet, sometimes you may need money even quicker.

If you need the money urgently, you can securely link your business bank account to Lula so that we can approve lending even faster.

When you link your bank account or accounting software, you give your bank or service provider permission to share your read-only transaction data with us. This way you can get a flexible line of funding in just two hours, deposited directly to your Lula account. We don’t save or store your username or password, we only see your latest transaction data, and you can unlink your account at any time.

Then, once you’re set up, you’re free to withdraw from your Lula facility whenever you like, as many times as you like.

Does my business qualify for Lula’s Revolving Capital Facility?

Wondering if Lula’s the right fit for your South African business? Great question!

Many small businesses in SA struggle with accessing funding in a tough economy.

Here’s the good news: Lula’s Revolving Capital Facility is specifically designed to help growing South African SMEs overcome this challenge.

While banks and other traditional lenders still depend on paperwork and credit scores to make a decision, we prefer to take the digital route to get a fairer picture of what your business is all about.

Here are the four things we look for

Registered South African business

Minimum trading history of 12 months

Healthy financial performance

Demonstrated through bank statements or accounting data

Strong growth potential

Shown by a solid business plan or future projections

Don’t worry if you’re not sure if your business meets every criterion perfectly. We take a holistic approach and consider the unique needs of each applicant.

The best way to find out if Lula’s right for you is to apply! Our streamlined online application takes just two minutes, and there’s no obligation.

Apply now