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Lulapay: making it faster and easier for SMEs to get paid

Small businesses can now get paid immediately, while still offering payment terms to their customers.

Lulalend, South Africa’s leading B2B digital lender, has announced the launch of Lulapay, a new product designed to help SMEs get their invoices paid faster, and as a result more effectively manage their cash flow.

A healthy cash flow has always been vital to the survival of any business, but has never been more important for SMEs than during the current period of uncertainty.

More than 50% of SME sales in South Africa are offered on what is known as trade credit – when a supplier allows the customer to pay the amount owed over a period of time. Typically this could be up to 65 days according to leading credit bureaus. However, 70% of SMEs also state that managing trade credit is a significant problem.

With Lulapay, businesses selling to other businesses will receive immediate payment for invoices issued, while still being able to offer their customers payment terms of up to 90 days. Lulapay makes use of bespoke AI driven technology to simplify and speed up the process of getting paid, without putting strain on customer relationships.

Lulapay promises an improved experience  for both the supplier and customer involved in any B2B transaction.

“We can help SMEs today by getting invoices paid faster. Business owners have told us that allowing their customers to pay over a period of time is essential for SMEs to attract and retain customers. And for the customer, not having to pay the full amount up front helps them invest in other growth opportunities. Despite these benefits, the ultimate impact of the traditional approach to managing trade credit is that cash still flows too slowly through the system. With Lulapay, we believe there’s a better way,” says Thomas McKinnon, Head of Product at Lulalend.

The supplier will now receive immediate payment for invoices directly from Lulalend. This cash flow boost, combined with no longer having to spend time chasing outstanding payments, will allow business owners to focus on growing their business while no longer having to worry about the risks of not getting paid in full, or on time, when offering credit to their customers. Lulapay facilitates all of this at no cost to the seller.

The supplier’s customers will now be able to use Lulapay to fulfil their invoices. Lulapay will offer the customer up to 90 days to pay off the invoice amount. If the buyer is able to settle in full within the first 30 days, they will not be charged any fees. There are no penalty fees for early settlement. These flexible trade credit terms give the buyer sufficient time to pay their invoice and help maintain a friction-free supplier relationship.

“The launch of Lulapay, a first of its kind in South Africa, is another step towards delivering on our mission of enabling SMEs to get fast, easy and fair access to the finance they need to grow. At a time when we will be relying on these businesses to drive our economic recovery,’’ says Mckinnon.

Visit Lulapay for more information on the benefits available to SMEs.

For any other queries, contact Lulalend on 087 943 2381 or at support@lulalend.co.za

Lulalend is a proud Partner of the NSBC.