Funding is not only about applying — it’s about qualifying. This lesson shows you exactly how to prepare your business for a successful approval, especially when working with fast lenders like Lulalend.
1. Introduction
Most businesses get rejected not because they are bad businesses, but because they are not funding-ready. Lenders look for stability, consistency, and financial discipline. This lesson teaches you the practical steps required to prepare for funding.
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2. Build a Strong Financial Foundation
Separate Personal and Business Finances
This is one of the biggest mistakes entrepreneurs make. Lenders struggle to evaluate your business cash flow if personal transactions are mixed in.
Recommended Action:
Open a business account
Keep business income separate
Use accounting tools Wave, Xero, & Sage
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3. Keep Clear Transaction Records
Lenders want to confirm:
Your income
Your expenses
Your cash flow stability
Good Bank Statements include:
Predictable monthly revenue
Few returned debits
Evidence of customer payments
No irregular Cash Withdrawals
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4. Maintain a Healthy Cash Flow
Lenders prefer businesses that:
Pay expenses reliably
Generates consistent revenue
Doesn't show large overdraft reliance
5. Reduce Debit Order Returns
A high rate (R/Ds) signals risk.
Most fintech lenders decline if returns are below 10-15%.
Tips:
Track debit orders
Ensure there is money on debit day
Spread debit orders across dates
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6. Build Business Credit
Your payment behavior matters.
Ways to build Business Credit:
Pay suppliers on time
Maintain a small overdraft responsibly
Use trade credit
Keep contracts active
Update CIPC details regularly
7. Improve Your Revenue Predictability
Consistent income increases funding approval significantly.
Lenders like Lulalend look for:
At least 6 months trading
Minimum R30K - R50K monthly revenue
No long negative cycles
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8. Have a Clear Funding Purpose
Lenders want to know:
What you need money for
How it will help grow revenue
How you will repay
Good funding purposes:
Stock purchases
Marketing
Staff
Scaling operations
Bad funding purposes
Pay off another loan
Personal expenses
Holidays
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9. Prepare Key Documents
Most lenders only need:
3 months bank statement
ID
Proof of address
Banks may require:
Financial statements
Tax clearance
Business plan
10. Apply at the Right Time
Lenders prefer approving you when:
Your revenue is stable
You have no recent debit order returns
You are not deep in overdraft
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Conclusion
Preparing for funding is more important than the application itself. Clean financial records, stable revenue, separate accounts, and responsible payment behaviour significantly increase your chances of approval with lenders like Lulalend.