Want to find out more about our loans or the way Lumi works? Here are the most frequently asked questions broken down by the products that we offer. We’re here to help.
Unlike other types of loans, an unsecured business loan doesn’t require collateral (like your home or car) to secure the loan. Instead, you’re asked for a personal guarantee to ensure you can pay back the loan.
Applying for a business loan with Lumi is simple and straight-forward. In fact, you can apply online right now – it only takes 10 minutes.
To complete your loan application, we recommend you have the following on-hand:
You can even link-up your cloud accounting software to complete the application, or we also accept your accounting statements as PDFs. If we require additional accounting information, one of our team members will be in touch.
To qualify, you just need to be running an Australian-registered business which has been in operation for at least 6 months, producing a minimal annual turnover of $50,000.
Our loans carry repayment periods of 3 – 18 months, however the majority are usually paid off in 6 months.
Our loans are totally transparent, meaning there’s no hidden fees or charges. You can apply online in under 10 minutes and receive an application outcome within the same day. If approved, your funds will be funded into your nominated bank account the same business day. Our loans are also unsecured, meaning we don’t require collateral (such as your home) to approve your funding.
It costs nothing to fill in our loan application form and you can apply as often as you’d like. Just keep in mind that applying for a loan more than once every 3 months could hurt your credit score.
As soon as your application is approved, you can expect your funds to be deposited into your nominated bank account the same business day.
Unlike some traditional lenders, your credit score isn’t the most important factor in whether we approve your business loan. We take a number of factors into account to determine if you’re eligible for small business funding. As a responsible and trusted lender, we won’t lend to businesses who we believe are not in a financial position to repay their loan successfully.
As a lender who prides itself on total transparency, we can promise no hidden fees. We simply charge a 2.5% establishment fee that is deducted at settlement. After this, your weekly repayments will be calculated upfront, with the same amount being deducted from your nominated account each week. No shock, no surprises.
We provide unsecured funding to small-medium enterprises, ranging across multiple industries. These include retail, hospitality, trades and labour, health and wellness, franchises, and professional services (just to name a few).
You can use your funds for almost anything relating to your business. Here’s just a few ideas:
Because our loans are repaid within a shorter time frame (usually in 6 months), we don’t believe in using an annualised interest rate to describe our loans. Instead, we provide you with your entire repayment amount upfront, including what your weekly payments will be. This ensures total transparency and no hidden fees for our customers.
Your weekly repayment amount will be determined by the amount you’re borrowing, as well as your repayment period. This amount will be disclosed to you before you sign-off on your loan, so you’ll never be kept in the dark. You can even use our loan repayment calculator to see what your weekly repayment will look like before you apply for your loan.
You can choose to repay the entire outstanding amount of your loan early, at any time. When you repay the remainder of your loan early, we may provide you with a discount on the remaining interest. This level of discount will vary, depending on how far into the loan term you are. There are no penalties for early repayment. Please give us a call on 1300 00 LUMI so we can discuss your early repayment.
If you’re unable to make your repayments or are experiencing financial hardship, please contact us ASAP so we can discuss a solution with you.
We recommend that businesses only take out one loan at a time, however if you believe your venture requires additional funding, please get in touch.
If you wish to increase your loan at any point, you may be able to do so. Please contact us so we can make any necessary adjustments.
You bet. We pride ourselves on being transparent about how we collect, use, exchange and protect your information. Our team are passionate about using advanced and trusted cyber security and data protection to ensure your personal and financial details are kept safe.
A Lumi Line of Credit is a limit facility that allows you to draw funds as and when you need them. With the Lumi Line of Credit, you are approved for a credit limit, similar to a credit card, and you are able to draw in and out of the facility to suit your working capital needs. One reason why lines of credit are particularly popular is the flexibility they provide to businesses. They offer a safety net of access to funds for when you need them, without the burden of debt for when you don’t require the funds.
The Lumi Line of Credit is a revolving credit facility, renewed annually. This means that every year, on the Line of Credit anniversary, our credit team automatically reviews it, and if there are no changes to your situation the Line of Credit will automatically renew and continue to be available for you. If any significant changes are identified, your Lumi Account Manager will contact you to discuss your options.
Once approved for a Lumi Line of Credit, you are required to make an initial drawdown in the first 4 weeks. After that, you’re free to draw down funds according to your needs. At the time of each drawdown we calculate your new minimum weekly repayment, based on the total balance on your Line of Credit, your interest rate and repayment terms. We then set up a direct debit from your nominated account and charge you once a week the minimum repayment amount. This minimum repayment amount will consist of principal and interest.
As this is an automatic direct debit, you’ll never need to worry about forgetting to pay or missing a payment.
You will also be able to make additional payments at any time, in which case you can finish paying out earlier, reducing the total amount of interest you pay.
Repayment terms vary depending on the circumstances of your Business, ranging from 2 to 5 years.
We charge a one-off establishment fee the fist time you draw down. This fee varies depending on the facility limit. After that, you can use your Line of Credit and draw funds as often as you need without paying any extra fees, for as long as the Line of Credit remains available.
You can use the funds for any business purpose, such as buying stock or equipment, paying staff, a marketing campaign, or a renovation.
At Lumi, we provide lines of credit of up to $500,000. We will determine your credit limit based on the circumstances of your business.
To be eligible for a Lumi Line of Credit you need to:
Give us a call on 1300 005 864. Our office hours are Monday - Friday 8:30 am - 7 pm AEST
If you prefer to email, drop us a line at firstname.lastname@example.org
We’ve made your Lumi Line of Credit accessible via our Lumi customer hub. When logged in, you will be able to undertake various different tasks. From viewing transactions to drawing down funds.
If you no longer wish to keep your Line of Credit open, you can contact us and we will close it for you. This means you will no longer be able to draw funds. However, your weekly repayments will continue until the totality of your balance owed (meaning the amount you have drawn down) is paid off. Once that is done, the payments will no longer be debited from your bank account.