Bridging finance

Bridging the gap in your cash flow

Bridging finance is a form of business finance used to cover immediate costs in the waiting time between receiving an expected cash flow boost. The balancing act between what’s coming in and going out can be like walking a tightrope. This can be especially true when you need to purchase expensive items sooner rather than later. Show more

Bridging finance is especially useful if you are expanding your company or premises. In such cases, cash flow can help cover your costs in the short term for investments that you expect a return on in the near future.

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The light at the end of the tunnel

The good news is, unlike the typically high-interest rates you’d find with this type of finance, Lulalend offers bridging finance that is unsecured, more affordable, and easily accessible within 24 hours. We also allow you to settle early without having to worry about penalty fees. Show more

With Lulalend's quick and easy online application, you can access business funding of up to R5 million within 24 hours. Our application is completely paperless, requires no collateral, and you’ll have an answer in hours.

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How to apply for Lulalend bridging finance

Apply online at Lulalend Small Business Funding - Step 1

Complete your online application

Apply online at Lulalend Small Business Funding - Step 2

Select how much you need

Apply online at Lulalend Small Business Funding - Step 3

Get approved in 24 hours

Up to R5 million line of credit | Choose 6 or 12-month terms | Apply in minutes

What will I pay?

We've simplified the lending process with our 6 and 12 Month Plans. Every month you pay back 16th or 112th (depending on which plan you choose) of the total advanced amount plus the monthly cost. Monthly Costs are 2% - 6% of your advanced amount for the first 2 or 4 months (plan dependent) and 2% for each of the remaining months. You can pay early and save.

6 months
Total repayment
No additional costs
Month Capital payment Cost * Monthly payment due
1 0 0 0
2 0 0 0
3 0 0 0
4 0 0 0
5 0 0 0
6 0 0 0
7 0 0 0
8 0 0 0
9 0 0 0
10 0 0 0
11 0 0 0
12 0 0 0
Total 0 0 0
* Based on average Lulalend Score and credit history — no hidden costs and no early repayment fees.

There's a better way to fund your business

“Lulalend not only made it possible for me to get access to the funding I needed for inventory purchases but their application process was easy and uncomplicated. It is completely online so I could do it from anywhere at any time and it took me no more than 10 minutes. A response to my application was also remarkably quick and I received the funding I needed within 24 hours – that’s unheard of with traditional lenders.”

Testimonial image
Phaedon Gourtsoyannis
Founder of Cape Coffee Beans

Why Lulalend?

  • Apply in minutes
  • Transparent, flexible terms
  • Access to finance in 24-hours
  • Customer-centric service
  • Unsecured financing
  • Trusted by local SMEs
  • No long queues or extensive paperwork
  • We say yes more often

Why Lulalend?

  • Apply in minutes
  • Transparent, flexible terms
  • Access to finance in 24-hours
  • Customer-centric service
  • Unsecured financing
  • Trusted by local SMEs
  • No long queues or extensive paperwork
  • We say yes more often

Bridging finance FAQs

We're covering the most frequently asked Bridging finance questions we get from business owners

What is Bridging finance in South Africa?

Bridging finance is a type of finance used to cover short-term gaps in funding.

For a business owner, bridging finance refers to short-term funding to cover costs while you wait for expected funds to be released. In this way, bridging finance is a cash advance to you.

In South Africa, bridging finance can also refer to the proceeds of a property sale. Based on the sale of your property, a lender will grant you a portion of the proceeds of the sale.

How to access bridging finance?

To access bridging finance, you will need to prove to the lender that you are set to receive funds. In other cases, you can access bridging finance to purchase goods. This means the lender might pay the supplier on your behalf.

Some funders will ask for collateral when you apply for bridging finance.

Once you have received the expected funds, you repay the lender. Bridging finance repayments include the original amount you borrowed, plus the cost of the bridge loan.

Do banks offer bridging finance?

In South Africa, some banks provide bridging finance so business owners can cover cash flow gaps. Remember that banks might require collateral or restrict the use of your bridging finance, e.g., must be used to pay suppliers directly.

Business funding specialists at Lulalend recommend you have clear time frames for when you need the bridging finance. If you need capital urgently to take advantage of a business opportunity, you will need bridging finance immediately. You will need to prioritise fast access to funding.

How does bridging finance work in South Africa?

Your agreement with the lender will determine the term of your bridging finance. When you receive the money, you pay back the bridge loan, along with costs.

Lenders will need proof of the funds due to you. This proof includes secured contracts or purchase orders.

Alternative lenders offer unrestricted bridging finance. What this means is that you are free to use the bridging finance for any business expense.

How much interest do you pay on bridging finance?

The cost of your bridging finance depends on two things: the funder and the total loan amount.

Lulalend urges SMEs to take note of the lender’s policy on early repayments. You might have to pay penalty fees if you want to settle before your agreed term. This is frustrating if you need an overnight facility, for instance.

How long does it take to get a bridge loan?

The exact time frame depends on the lender and the type of bridging loan you need.

When it comes to property sales, you could have access to your bridging finance in a few days. Alternatives lenders, for instance, release funds into your account in a matter of hours.

Who offers bridge loans?

Banks, alternative lenders, and government funders provide bridge loans.

Lulalend’s business funding specialists warn SME owners against unscrupulous lenders. Responsible lenders base their credit judgements on whether or not you’re able to repay the debt. Stay away from lenders that promise to grant bridge loans even if you’re blacklisted.

Are bridge loans a good idea?

SMEs are often held back by inadequate cash flow. Bridging loans smooth the ups and downs that come with running a business.

Bridging finance closes the funding gap for small businesses. A bridge loan gives you the funds to take advantage of new opportunities, like expanding your business or pursuing a new contract.

Get approved for up to R5 million today. No fees, no commitments